House Bill 532

Actions | Amendments
Last Action 03/11/21: recommitted to Appropriations & Revenue (H)
Title AN ACT relating to pharmacy benefit managers.
Bill Documents Introduced
Fiscal Impact Statement Fiscal Note
Bill Request Number 60
Sponsors S. Sheldon, D. Bentley, A. Bowling, R. Bridges, R. Dotson, D. Frazier Gordon, R. Goforth, D. Hale, M. Hart, S. Heavrin, R. Huff, K. King, M. Koch, D. Lewis, S. Lewis, C. Massey, S. McPherson, P. Pratt, M. Prunty, B. Reed, S. Riley, B. Rowland, S. Sharp, N. Tate, W. Thomas, J. Tipton, K. Upchurch, R. Webber
Summary of Original Version Create a new section of Subtitle 12 of KRS Chapter 304 to prohibit certain practices of pharmacy benefit managers; allow audits of contracts entered with pharmacy benefit managers; require certain disclosures relating to contracts with pharmacy benefit managers; require pharmacy benefit managers to file an annual report with the commissioner of insurance; provide that confidential or proprietary information disclosed to the Department of Insurance shall not be subject to disclosure under the Open Records Act; prohibit pharmacy benefit managers from sharing certain pharmacy records with pharmacy affiliates; authorize the commissioner of insurance to promulgate regulations relating to pharmacy benefit managers; amend KRS 304.17A-708, 304.17A-712, and 304.17A-714 to conform; provide for severability; require the commissioner of insurance to promulgate regulations to implement the Act on or before January 1, 2022; EFFECTIVE, in part, January 1, 2022.
Index Headings of Original Version Fiscal Note - Pharmacy benefit managers, regulation
Drugs and Medicines - Pharmacy benefit managers, regulation
Effective Dates, Delayed - Pharmacy benefit managers, regulation, January 1, 2022
Federal Laws and Regulations - Federal law, pharmacy benefit managers, exemptions
Insurance, Health - Pharmacy benefit managers, regulation
Pharmacists - Pharmacy benefit managers, regulation
Administrative Regulations and Proceedings - Commissioner of Insurance, pharmacy benefit managers, regulation
Reports Mandated - Commissioner of Insurance, pharmacy benefit managers, annual report
Jump to Proposed Amendments House Committee Substitute 1

Actions

Top | Amendments
02/22/21
  • introduced in House
  • to Committee on Committees (H)
02/23/21
  • to Health & Family Services (H)
  • posted in committee
02/25/21
  • reported favorably, 1st reading, to Calendar with Committee Substitute
02/26/21
  • 2nd reading, to Rules
03/11/21
  • recommitted to Appropriations & Revenue (H)

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Summary Retain original provisions, except specify that contracts with pharmacy benefit managers and a pharmacy or pharmacist, either directly or through a pharmacy services administration organization, shall prohibit certain practices; prohibit paying or reimbursing a pharmacy or pharmacist less than the national average drug acquisition cost or wholesale acquisition cost; prohibit creating, modifying, implementing, or establishing any fee on a pharmacy, pharmacist, or insured without prior approval from insurance commissioner, prohibit pharmacy benefit managers from requiring insureds to use a mail-order pharmaceutical distributor or a mail-order pharmacy; require contracts between an insurer or third-party payor and a pharmacy benefit manager to provide that the pharmacy benefit manager shall owe a fiduciary duty to the insurer or third-party payor; prohibit pharmacy benefit managers from utilizing any form of spread pricing.
Index Headings Effective Dates, Delayed - Pharmacy benefit managers, regulation, January 1, 2022
Federal Laws and Regulations - Federal law, pharmacy benefit managers, exemptions
Insurance, Health - Pharmacy benefit managers, regulation
Pharmacists - Pharmacy benefit managers, regulation
Administrative Regulations and Proceedings - Insurance commissioner, pharmacy benefit managers, regulation
Reports Mandated - Insurance commissioner, pharmacy benefit managers, annual report
Drugs and Medicines - Pharmacy benefit managers, regulation

Last updated: 11/9/2023 2:52 PM (EST)