Bill would require PSAOs to register as third‑party administrators and extend PBM rules to contracted pharmacies

The Senate Committee on Health Care took testimony May 1 on House Bill 3,226 A, which would add Pharmacy Services Administrative Organizations (PSAOs) to the scope of statutes that regulate pharmacy benefit managers (PBMs) and require certain PSAOs to register with the Department of Consumer and Business Services as third‑party administrators.

Representative Nancy Nathanson, sponsor of the bill, told the committee PSAOs are an additional contracting layer between PBMs and many small community pharmacies, and the bill’s purpose is to ensure PBM rules apply even when a pharmacy contracts indirectly through a PSAO. The bill would require PSAOs to register as third‑party administrators with DCBS but exclude PSAOs that are not owned by a PBM and that only charge a monthly fee for services unrelated to drug pricing and volume.

Amanda Meeker, president of the Oregon State Pharmacy Association and a pharmacist, urged support, saying PSAOs have been used to shift contracting in ways that let PBMs avoid accountability for practices such as under‑reimbursement, retroactive fees and discriminatory network design. Meeker said registration will increase transparency while exempting PSAOs that only provide fee‑for‑service administrative support.

Will Dane of the Healthcare Distribution Alliance described PSAOs as voluntary administrative supports that help independent pharmacies with contracting and claims submission and estimated typical PSAO monthly fees around $200. Committee testimony noted that Oregon has about 351 TPAs licensed with DCBS and that the current TPA renewal fee is $45 annually.

Supporters said the bill aligns Oregon with other states that have registration or registration‑type requirements for PSAOs and PBMs. The House passed the bill unanimously out of that chamber, advocates said.

The committee closed the public hearing on HB 3,226 A and scheduled a work session for Tuesday, May 13.