Committee hears bills to register, license PSAOs; supporters seek transparency, opponents warn of burdens

The House Committee on Behavioral Health and Health Care heard competing views on legislation to bring pharmacy services administrative organizations (PSAOs) under state registration or licensing requirements, with advocates saying the measures would add transparency and opponents warning the proposals could impose burdens that raise costs for independent pharmacies.

Supporters told the committee on Feb. 6 that PSAOs, which many independent pharmacies use to handle contracting, claims submissions and appeals with pharmacy benefit managers (PBMs), are an important but under‑examined part of the drug supply chain. “House Bill 2,149 will allow the State to better examine what value and what costs PSAOs are bringing to the independent pharmacies and the drug supply chain,” Kelsey Wilson of the Pharmaceutical Care Management Association said in support of the bill.

The bills would require PSAOs to register or be licensed and to disclose affiliations and contract terms to the pharmacies they represent. Proponents, including Rep. Nancy Nathanson (sponsor) and Rep. Bobby Levy, said state registration would close a regulatory gap that can leave pharmacies unsure who negotiates on their behalf. “This bill ensures that PBMs remain subject to the laws that govern them, even…