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Committee adopts substitute requiring PBMs and plans to offer point-of-sale rebate option to employers
Summary
The committee adopted a substitute to House Bill 257 directing pharmacy benefit managers and health plans to offer employer plans that pass manufacturer rebates at point of sale, mirroring prior PEHP-focused legislation and aiming to increase transparency for enrollees; substitute adopted and bill passed out favorably unanimously.
Representative Thurston presented a substituted House Bill 257, described as a companion to earlier legislation addressing pharmacy benefit manager (PBM) rebates. The substitute removes an outdated PEHP-specific section and corrects a typographical error but keeps the substantive requirement that PBMs and health plans must offer employer-sponsored plans that include point-of-sale rebate treatment for employees.
Nut graf: Sponsors and supporters told the committee the measure is focused on transparency and ensuring that manufacturer rebates benefit enrollees, not hidden revenue streams. The substitute mirrors a prior bill that had garnered substantial stakeholder discussion and returned with industry agreement for the revised language.
Thurston said the substitute requires PBMs and health plans to offer a plan option to employers that passes pharmaceutical manufacturer rebates through to enrollees at point of sale; employers could choose whether to purchase that plan for their employees. An industry witness, Eric Cooney of NABIP (National Association of Benefits and Insurance Professionals), testified in support and cited opaque rebate flows as a driver of drug costs.
Representative Burton moved to adopt the first substitute; the committee adopted the substitute on voice vote. Representative Ballard then moved to pass the substitute bill out favorably and the committee approved the motion by voice vote; the transcript records unanimous passage with no roll-call tally recorded.
Ending: The substitute was adopted and the bill was passed out favorably by unanimous voice vote. Sponsors said the measure represents an incremental step to increase transparency and offer employers a rebate-passing plan option.
