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Panel backs bill giving pharmacies a private right of action against PBMs
Summary
Senate Bill 583 would allow pharmacies to sue pharmacy benefit managers for damages the state insurance department recovers administratively; sponsors said pharmacies currently lack direct remedies.
Representatives Clark Tucker and Jeremiah Moore presented Senate Bill 583, which the sponsors described as creating a private right of action so pharmacies can recover losses caused when pharmacy benefit managers (PBMs) violate state law.
Rep. Moore told the committee SB 583 was “a pretty straightforward bill that was passed 35 to 0 in the senate. It has to do with a private right of action for pharmacies to collect damages, through the courts.” He said the Insurance Department can fine PBMs and collect penalties that go to the state treasury but that “the funds collected go into the state treasury while they don't compensate the pharmacy for the pharmacy's loss as a whole, meaning time, effort, etcetera.”
Moore and Tucker said pharmacies need a private remedy to recover losses from PBM practices found to be unlawful. No witnesses registered opposition in committee testimony; the sponsors closed and urged a favorable vote. Representative Latham moved to pass the bill and the committee approved the motion by voice vote.
The bill would add to existing enforcement options by allowing affected pharmacies to seek recovery in court for losses tied to PBM violations identified under the Insurance Department’s authority.
