Nebraska Senate advances LB 198 addressing pharmacy benefit manager regulations

A significant step forward in healthcare legislation was taken during the Nebraska Legislature's morning session on May 1, 2025, as lawmakers advanced LB 198, aimed at addressing critical issues surrounding pharmacy benefit managers (PBMs). The bill, championed by Senator Sorrentino, received overwhelming support, with amendments designed to clarify and strengthen its provisions.

Senator Jacobson introduced AM 12:29, a technical amendment that refines the language regarding "substantially similar costs," ensuring comprehensive application to both the sourcing and administration of drugs. This adjustment is seen as a safeguard against potential misinterpretations of the law. Jacobson emphasized the importance of this amendment, urging colleagues to support it for the benefit of Nebraskans.

Senator Duncan, a member of the Banking, Commerce, and Insurance Committee, echoed Jacobson's sentiments, highlighting the nonpartisan nature of the PBM issue. He noted the ongoing efforts over the years to ensure patients have access to affordable medications while fostering competition within the industry. Duncan praised the collaborative work that led to the bill's advancement, calling it a significant step in the right direction.

Senator Hallstrom also voiced his support, commending Jacobson's leadership and acknowledging the need for continued efforts to address PBM-related challenges. He referenced a concerning report from Ohio regarding excessive spreads charged by PBMs, which could adversely affect healthcare costs in Nebraska. Hallstrom called for further studies and audits to ensure fair practices within the industry.

The session concluded with the successful adoption of both AM 12:29 and the committee amendment AM 12:01, followed by the advancement of LB 198 to the next legislative stage. With 39 votes in favor and none against, the bill's progress marks a pivotal moment in Nebraska's healthcare policy, aiming to enhance transparency and affordability in medication access for residents.