Senator Bass, chair of the Pharmacy Benefits Monitoring Advisory Council, told the panel on Oct. 27 that the three largest pharmacy benefit managers — CVS Caremark, Express Scripts and Optum — did not send executives to explain their business practices despite repeated requests. Bass warned the companies that Louisiana law requires PBMs licensed in the state to cooperate with the advisory council and asked the Department of Insurance to contact the firms and report back by the next meeting.

The council’s concern centers on what Bass described as the advisory council’s statutory authority. Bass read language on the record saying Revised Statute 40:28-69(d) directs the advisory council to provide monitoring of PBMs and says “Any licensed pharmacy benefit manager operating in the state of Louisiana shall provide full cooperation with the advisory council.” Bass said he had personally called lobbyists and leadership at the three PBMs and their leadership “refused to come.” He asked Department of Insurance staff to explain whether that refusal could jeopardize a company’s state license.

Why it matters: The council exercises newly expanded oversight of pharmacy benefit managers in Louisiana. If the Department of Insurance concludes that noncooperation breaches a licensing obligation, the state could pursue administrative follow-up that may include license review, which would be an enforcement step with legal and regulatory significance.

Bass said the council had received an emailed statement from a CVS lobbyist offering to “present on the value of PBMs,” but that the company sent no executive to answer specific questions in person. Bass also told members the council’s data review suggested surprising differences between small PBMs and the three largest PBMs in rebate reporting for Louisiana: “We had a report last time from LDI on the annual transparency report… that small PBM that is located in Natchitoches returned $960,000,000 in rebates. The 3 that I have called… returned $658,000,000 between the 3 of them.” Bass said the council wants the Department of Insurance to investigate that apparent discrepancy and to ensure the data are accurate.

Department of Insurance representative Mr. Opelka was asked by the chair to follow up. Bass asked the department to reach out to the PBMs and make clear to them that their continued licensure in Louisiana depends on cooperation with the council. Bass said he expected an update at the council’s next meeting.

Votes at a glance: The council approved the meeting minutes on a motion by Representative Ferment (approved, no roll call names entered in the transcript). At the end of the hearing Representative Furman moved to adjourn; the motion carried with no recorded objection and the meeting was dismissed.

What the council directed: The chair asked staff to send the communications the council used to request PBM attendance to the Department of Insurance and asked staff to prepare a letter to the PBMs and to group purchasing organizations requesting on‑the‑record testimony at a future meeting. The chair also said the council would request a formal Department of Insurance determination about whether failure to cooperate could affect licensure.

Next steps: The council asked staff to schedule follow-up hearings and asked the Department of Insurance to report back on outreach and any licensure findings by the next meeting.

(At the meeting the chair repeatedly used the statutory citation language in public remark; the council did not take an enforcement action during the session — it requested that the Department of Insurance examine cooperation and report back.)