Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pharmacy Benefit Manager Licensing topic
No spam. Unsubscribe anytime.
LCAR approves DFR rule setting licensing process for pharmacy benefit managers
Summary
On April 24 the Legislative Committee on Administrative Rules approved a Department of Financial Regulation proposed rule (Rule 25 P 006) implementing Act 127 (2024) by setting licensing application, renewal and reporting procedures for pharmacy benefit managers operating in Vermont.
The Legislative Committee on Administrative Rules on April 24, 2025 approved a Department of Financial Regulation proposed rule (Rule 25 P 006) that sets the licensing application, renewal, financial and reporting procedures for pharmacy benefit managers (PBMs) operating in Vermont under Act 127 of 2024.
Susan Morris, head of general counsel at the Department of Financial Regulation, told the committee the rule is procedural and implements the statute’s licensing framework. “This proposed rule is limited to setting forth the procedural process by which a PBM obtains or renews a PBM license to operate in Vermont,” Morris said. She added the rule aligns the PBM process with existing licensing procedures the department uses for other regulated entities.
Department staff described PBMs as intermediaries between insurers, health plans and drug manufacturers that negotiate prescription drug prices, rebates and pharmacy reimbursement and that they also establish plan formularies. Morris named several large, national PBMs when describing the market, citing CVS Health, Express Scripts, Cigna and Optum. The department said it received “very few” public comments on the proposed rule but noted some commenters questioned the fees; Morris said the fees were established by statute.
Dan Radick and Sebastian (both Department of Financial Regulation staff) were available during the presentation to answer technical questions. Representative Odey moved to approve the rule as submitted with departmental modifications; the committee approved the motion by voice vote with no opposition recorded.
The committee recorded no amendments to the rule text during the meeting. The department indicated the rule is intended to be administratively effective and consistent with other licensing regimes the department enforces; the transcript does not show the committee taking further substantive edits or referring the rule for additional changes.
The committee’s next scheduled meeting was announced as May 15, 2025.
