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Senate advances PBM transparency measure requiring rebate reporting and licensing
Summary
Senators passed Third Substitute House Bill 370 to require pharmacy benefit managers to report rebates to the Department of Insurance and to be licensed there, with auditing and contracting provisions; bill passed under suspension, 24–0 (5 absent).
Senators voted to pass Third Substitute House Bill 370, a measure targeting pharmacy benefit managers (PBMs) with new transparency and licensing requirements.
Sponsor Senator Vickers said the bill requires rebate reporting to the Department of Insurance, makes PBM licensing a Department of Insurance responsibility rather than a Department of Commerce registration, and includes provisions to support ongoing audits of PBM processing for Medicaid and other state plans. "The rebate reporting piece is a big deal," Vickers said, adding that better data will allow the state to start to quantify where rebates are going and how they affect payer costs.
Senator Henderson and others praised the effort as an initial step in addressing high prescription drug prices and said they had heard from constituents rationing medication. The sponsor listed stakeholders involved in drafting the substitute, including the Department of Insurance, Department of Commerce, PEHP, SelectHealth and auditing entities.
The Senate passed the third substitute under suspension of the rules; the motion carried with 24 yay votes, 0 nay votes and 5 absent. The bill will be returned to the House for further consideration.
What’s next: The measure moves back to the House for concurrence and the reporting and licensing changes will be implemented through the Department of Insurance if the House concurs and the bill is signed into law.
