Committee advances bill to create standalone licensing for pharmacy benefit managers

The House General Government Committee voted 11-0 to favorably report House Bill 229 after proponent testimony that the measure would create a standalone licensing process and a clearer oversight framework for pharmacy benefit managers (PBMs).

"Pharmacy benefit managers . . . are one of the many important tools that employers use to design and manage their prescription drug benefits. They help employers provide broad access to medications and manage costs," said Molly Machram, director of health care policy at the Ohio Chamber of Commerce, during the committee's fifth hearing on the bill. Machram said HB 229 would set consistent licensing criteria and contract requirements and would require greater clarity on rebates, administrative fees and access to PBM financial and utilization data used by employers.

Committee members heard that the bill would establish licensing and regulatory oversight for PBMs through the Ohio Department of Insurance and that sponsors and stakeholders, including the Ohio Chamber of Commerce, negotiated language before the hearing. "We respectfully urge the committee to support [House Bill 229]," Machram said.

Vice Chair Lorette moved to favorably report the bill to the full House. The clerk recorded 11 affirmative votes and 0 negative votes; committee leadership said the bill was favorably reported and that this concluded the bill's fifth hearing.

The testimony and the committee's vote advance HB 229 to the next stage of the legislative process. The written testimony and the committee roll remain part of the committee record.