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House orders audit of state prescription purchasing after retreat from full bulk-buy proposal
Summary
Lawmakers approved a substitute to House Bill 79 that scales back a proposed bulk-purchasing program and instead directs a legislative audit to review pricing, discounts and pharmacy-benefit arrangements across state entities; the substitute passed 65-4.
After floor negotiations, the House substituted and passed a revised House Bill 79 that prioritizes a legislative audit of state prescription-drug purchasing arrangements rather than immediately creating a state-run bulk-purchasing pool.
Representative Glass (Last on the reading) explained the substitute narrows the original proposal and directs the legislative auditor to examine whether state entities are using due diligence to obtain best prices, discounts and rebates and to review reimbursement and consultant arrangements. The sponsor said Medicaid was excluded from the substitute as a compromise because of federal complexity.
Opponents and questioners raised concerns about competitive impacts, how private insurers and pharmacy-benefit managers would be involved, and whether the audit framework would permit input from insurers and providers. Supporters argued the audit would expose price disparities and help determine whether further consolidation or bulk purchasing is appropriate.
Representative Mascaro recounted a personal example of confusing multiple price points for a single prescription to underline the problem of opaque pricing. The substitute passed 65-4 and will be referred to the Senate. The audit, if conducted, would produce data on state entities’ contracts and could spur future legislative action on bulk purchasing.
Next steps: Legislative Auditor to conduct the prioritized review; possible future legislation depending on audit findings.
