Senate approves bill to limit some PBM revenue practices after floor amendment fights

The Colorado Senate on May 2 passed House Bill 10-94, legislation that restricts some pharmacy benefit manager (PBM) revenue practices and requires greater transparency in PBM contracts and reimbursements.

Supporters said the bill narrows the ways PBMs can profit so savings negotiated on drug prices reach health plans and patients. Senator Roberts, speaking for the bill, described amendments negotiated in the Health and Human Services Committee and asked members for a yes vote.

The bill drew a series of floor amendments. Senator Bazely offered several amendments intended to change how the bill treats PBM income and reporting deadlines; senators Roberts and others urged colleagues to reject those amendments because they would undercut the bill’s core reforms. Committee amendments and floor proposals that would have made key provisions optional or delayed reporting were rejected on party-line and divided votes. After debate and the formal amendment votes, the Senate adopted the bill.

The bill requires PBMs to report certain prescription-cost and rebate information to carriers and to limit some income structures tied to net acquisition cost. Sponsors said the measure preserves PBMs’ role in negotiating purchases while ensuring a clearer pass-through of discounts to plans.

Votes on many individual floor amendments were taken on the Senate floor during prolonged debate. The final motion to pass House Bill 10-94 carried; the motion was adopted and the bill was reported passed to third reading/final passage (floor notation: “The ayes have it. House bill 10 94 is adopted.”).

What happened next: the bill moves to the statutory revision steps and any additional enrollment steps required before transmittal to the governor.

Sources: Senate floor debate and amendment record during the May 2 session.