Louisiana passes House Bill 264 enhancing PBM regulations and consumer protections

The House of Representatives convened on June 12, 2025, to discuss significant amendments to House Bill 264, focusing on reforms related to Pharmacy Benefit Managers (PBMs). The meeting highlighted a series of amendments aimed at increasing transparency, regulatory oversight, and consumer protections within the pharmaceutical industry.

The first item on the agenda was a detailed overview of the amendments to House Bill 264. Key changes included a broader definition of rebates, expanded regulatory authority for the insurance commissioner, and enhanced audit powers concerning PBM operations. The bill establishes a fund to address violations by PBMs, ensuring that consumer refunds and enforcement actions can be financed. Additional provisions included anti-fee protections for pharmacies, a claim error remediation clause, and a requirement for manufacturers to notify of price increases exceeding 15% with a 30-day written notice.

Representative Echols emphasized that the bill represents a significant step towards stronger oversight and consumer protection, despite the absence of an amendment that would prohibit PBMs from owning pharmacies. He acknowledged the efforts of various stakeholders, including independent pharmacies and drug manufacturers, in shaping the amendments through a transparent negotiation process.

Further discussions revealed that the bill aims to eliminate spread pricing and ensure that rebates are returned to consumers rather than being absorbed by large health plans or PBMs. Representative Jordan noted the importance of these changes in promoting effective rate transparency and preventing steering practices.

The meeting also addressed concerns regarding the lack of stronger delinking language in the bill, which would prevent financial incentives from influencing pharmacy benefit decisions. Despite these concerns, representatives expressed optimism about the bill's potential to protect consumers and independent pharmacies from exploitative practices.

In closing, Representative Echols underscored the significance of the bill as a turning point for Louisiana consumers, stating that it draws a line against the abuses of PBMs. He thanked his colleagues and stakeholders for their collaborative efforts and highlighted the ongoing commitment to reforming the pharmaceutical landscape in Louisiana. The meeting concluded with a call for continued vigilance against misinformation campaigns aimed at influencing legislative outcomes.