Oklahoma Senate committee advances bills on pharmacy benefit managers, consumer protection and insurance coverage

The Oklahoma Senate Business and Insurance Committee advanced a suite of bills affecting pharmacy benefit managers (PBMs), consumer-protection enforcement, insurance coverage and several business-regulatory issues during a committee meeting of the full committee.

The committee moved ahead on a set of PBM-focused bills that would impose new duties on PBMs and change how pharmacies are audited and reimbursed; it also approved legislation aimed at expanding the attorney general’s consumer-protection reach over out-of-state alcohol shipments, requiring insurance coverage for certain genetic tests and imaging, and clarifying title and registration procedures for used utility task vehicles (UTVs).

Why it matters: PBM regulation and pharmacy-payment practices directly affect pharmacies, insurers and patients statewide; consumer-protection changes target cross-border online alcohol sales; insurance coverage bills affect preventive services insurers must cover. Several measures passed by voice vote, often unanimously, which advances them to the next legislative step.

The PBM bills were among the most discussed items. Senator Natalie Hicks, sponsor of Senate Bill 161, told the committee the measure “requires every pharmacy benefit manager to maintain a fiduciary duty to insurers and insureds served by the PBM.” During questioning, Hicks acknowledged PBMs do not currently have a codified fiduciary duty and said the bill “codifies best practices” intended to hold PBMs to a statutory standard. When asked how many PBMs operate in Oklahoma, Hicks said she was “aware of at least 5.”

Senator Galahari (committee sponsor for a related bill) described Senate Bill 773 as an amendment to the Patient’s Right to Pharmacy Choice under Title 36 to ensure discount and loyalty-card companies contracted with PBMs cooperate with investigations, require PBMs to fulfill payment obligations to pharmacies after contract termination, and to require PBMs to pay fines within 30 days of a final order. Galahari told the committee the bill had support from colleagues and said it was intended to “sharpen the sword” for enforcement alongside ongoing attorney general activity.

Senator Galahari also presented bills that would (1) give pharmacies broader access to historical drug purchase records for validating dispensing (a Title 59 amendment) and (2) clarify audit timelines and protections so pharmacies are not fined unless an audit results in valid recoupment; the audit bill adds a clause suspending audit and appeal timelines during a declared natural disaster.

On consumer-protection and alcohol shipments, Senator Coleman explained legislation that narrows a statutory exclusion in Oklahoma’s Consumer Protection Act so the attorney general’s consumer-protection unit can pursue general consumer-protection violations that are not already regulated under another specific agency. Deputy Attorney General Justin Wolf briefed the committee on the change, saying the bill would narrow the broad exclusion that currently removes most regulated industries from the Consumer Protection Act, enabling the attorney general to address out-of-state alcohol shipments and similar consumer issues.

On health-insurance coverage, Senator Stanley presented Senate Bill 109, described as a Susan G. Komen request bill, which would require coverage of essential genetic testing for inherited cancer risk and advanced imaging for people at higher risk and remove cost-sharing (deductibles, co-pays, coinsurance) for those services except where health-savings-account rules apply. That bill passed the committee on a recorded vote, 8 ayes and 2 nays.

Other measures advanced included a bill to clarify how and when museums may obtain legal ownership of long-abandoned donated items (sponsor noted the issue affects “nearly 500 museums across Oklahoma”), bills to allow retailers and used-power-sports dealers clearer title transfer authority for UTVs, a bill addressing odor-control plans for indoor cannabis growth operations within municipal corporate limits, changes to retainage rules in municipal construction contracting, and cleanup of complaint-posting language for contractor roofing complaints on the Construction Industries Board website.

Votes at a glance (selected measures advanced by committee): - Senate Bill 1019 — prohibition on insurers enforcing time limits or excluding coverage for anesthesia time: passed by committee (voice/roll call recorded as 10 ayes, 0 nays). - Senate Bill 351 — committee substitute to permit limited, disclosed surcharges on credit/debit card transactions and set limits to avoid profit-seeking fees: passed (10–0). - Senate Bill 677 — repeal of a statute prohibiting surcharges for card use (related measure): passed (10–0). - Senate Bill 377 — updates to the Oklahoma Fair Practices for Manufacturers, Distributors, Wholesalers and Dealers Act (definition of “good cause,” competing lines rules): passed (10–0). - Senate Bill 996 — process for museums to obtain legal ownership of abandoned donation property; sponsor said there is no fiscal impact to the state: passed (10–0). - Senate Bill 109 — removes cost-sharing for certain genetic testing and imaging (Susan G. Komen request): passed (8 ayes, 2 nays). - Senate Bill 161 — requires PBMs to maintain fiduciary duty to insurers and insureds: passed (10–0). - Senate Bill 773 — requires PBM cooperation with investigations, payment obligations after contract termination, and prompt payment of fines: passed (10–0). - Senate Bill 789 — Title 59 changes permitting use of drug purchase records without date/source limitation for dispensing validation and requiring PBM notification of fraud/abuse: passed (10–0). - Senate Bill 993 — clarifies audit timelines and contents; prevents fines unless audit results in valid recoupment; adds disaster suspension for audit timelines: passed (10–0). - Senate Bill 529 — creates a used power-sports dealer license so used UTV dealers can transfer titles for street registration (“Cody’s Law” language noted as optional by sponsor): passed (10–0). - Senate Bill 1092 — odor-control plan requirement for indoor growth facilities within municipal corporate limits: passed (10–0). - Senate Bill 1106 — limits municipal retainage practices on construction contracts (fair pay for construction): passed (10–0). - Senate Bill 1099 — allows restaurants and bars to purchase and offer certain vintage distilled spirits under defined conditions (title-strike requested): passed (10–0). - Senate Bill 516 — cleanup addressing posting of unverified roofing complaints to the Construction Industries Board web page and adding due-process protections under the Oklahoma Administrative Procedures Act: passed (10–0). - Senate Bill 436 — narrows the Consumer Protection Act exclusion to allow attorney general enforcement against out-of-state alcohol shipments and similar consumer harms: passed (10–0). - Senate Bill 1044 — committee considered changes to permit electronic funds transfers in alcohol sales and payments; sponsor requested further work and asked to strike title; committee advanced the measure pending further drafting: passed (10–0).

Committee sponsors and several members emphasized enforcement and practical effects: rural senators warned that unfair PBM practices threaten local pharmacies; sponsors said many measures came from constituent complaints and industry stakeholders. Deputy Attorney General Justin Wolf told committee members the attorney general’s consumer-protection unit currently handles such cases and that narrowing the exclusion would allow more consumer-protection enforcement.

The committee did not adopt major amendments on most measures and advanced the bills to the next legislative stage. Several sponsors said they will continue negotiations (for example on vintage distilled spirits and electronic-payment language) before floor consideration.