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House committee hears bill to clarify state authority over pharmacy benefit managers amid ERISA debate
Summary
A hearing on House Bill 1584 drew testimony from state lawmakers, legal experts and industry representatives about expanding enforcement authority over pharmacy benefit managers (PBMs) and how ERISA preemption could limit state action. Committee members signaled interest in technical amendments but took no final vote.
The House Industry, Business and Labor Committee in Bismarck held a hearing on House Bill 1584, which would clarify the insurance commissioner’s authority to regulate pharmacy benefit managers and add enforcement penalties.
The bill’s sponsor, Representative Jim Casper, R-Fargo, told the committee PBMs “are the middlemen between the drug manufacturers, the pharmacies, the health insurance plans, and the insurance companies,” and said the proposal aims to update 20-year-old state…
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