Senator Melanie Scheibel presents Senate Bill 389 to streamline Medicaid pharmacy management

The Senate Committee on Health and Human Services convened on April 10, 2025, to discuss several key legislative items, primarily focusing on Senate Bill 389, which aims to reform the administration of pharmacy benefits under Medicaid and other health plans.

The meeting commenced with procedural announcements, including a reminder for public comments to be held at the end of the session. The committee outlined its agenda, which included hearings on Senate Bills 118, 127, 303, 372, and 3809, followed by a work session on various other bills.

Senate Bill 389 was introduced by Senator Melanie Scheibel, who emphasized the bill's goal of transitioning Nevada's Medicaid program to a single pharmacy benefit manager (PBM). This change is expected to streamline operations, reduce costs, and enhance transparency within the Medicaid system. Senator Scheibel highlighted that the bill would prohibit the use of spread pricing by the PBM, which is a practice that can lead to inflated drug prices for patients.

During the discussion, Senator Titus raised questions regarding the selection process for the new PBM, noting that currently, there are five PBMs in operation. Senator Scheibel clarified that the Department of Health and Human Services would conduct a request for proposals (RFP) to select the new PBM, ensuring compliance with federal regulations.

Support for Senate Bill 389 was robust, with numerous stakeholders, including pharmacists and health organizations, testifying in favor of the bill. Testimonies highlighted the frustrations faced by pharmacists dealing with multiple PBMs and the potential for significant cost savings for both the state and patients. For instance, representatives from the Nevada Pharmacy Alliance noted that states with similar legislation, such as Ohio and Kentucky, had achieved substantial savings after implementing a single PBM model.

The committee also opened the floor for opposition testimony, but no opposition was recorded during the session. Neutral testimonies were minimal, with one individual expressing support for the bill.

The meeting concluded with a brief recess to ensure all voices, particularly from Las Vegas, were heard before officially closing the hearing on Senate Bill 389. The committee's discussions underscored a significant step toward reforming Medicaid pharmacy benefits in Nevada, aiming for improved efficiency and cost-effectiveness in the state's healthcare system.