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Insurance subcommittee advances bill to hold pharmacy benefit managers to insurer prompt-pay standards
Summary
The Insurance Subcommittee approved House Bill 1244 to require pharmacy benefit managers to meet prompt-payment standards like health insurers and to remove statutory caps on penalties, sending the measure to the full Insurance Committee.
The Insurance Subcommittee on Wednesday approved House Bill 1244, a measure aiming to hold pharmacy benefit managers to prompt-payment standards similar to those that apply to health insurers, and to remove statutory limits on individual and aggregate penalties for violations.
Chairman Martin, sponsor of House Bill 1244, told the subcommittee the bill “holds pharmacy benefit managers accountable to prompt pay standards similar to health insurers” and removes limits on penalties while allowing the Tennessee Department of Commerce & Insurance (TDCI) to set penalties and increase them for repeat offenders.
The bill’s sponsor said the measure also gives TDCI flexibility to adjust penalties for repeat violations. No other legal sources or statutes were cited during the discussion. Committee members did not raise follow-up questions; the amendment to the bill was adopted and the panel voted 5-0 to advance the bill to the full Insurance Committee.
The measure will next be considered by the full Insurance Committee; no implementation timeline was provided during the subcommittee meeting.
