Committee advances DMS reforms including prescription drug formulary and supplier diversity changes after heated questioning

Representative Abbott presented PCB SAB 26-01, a package of Department of Management Services reforms tied to the House proposed General Appropriations Act for fiscal year 2627. The sponsor said the bill’s primary goal is to address a projected $362,000,000 deficit in the State Employee Health Insurance Trust Fund by implementing two main reforms: (1) authorize a prescription drug formulary for the state group insurance program beginning in 2027 to enable price negotiations and (2) codify an administrative health insurance assessment on state agencies for vacant positions (previously included in implementing legislation). The sponsor also described ancillary provisions: removing a sunset date on a $3 traffic-violation surcharge that generates roughly $4,000,000 to help fund the state law enforcement radio system; updating management of the Capital Complex to require legislative approval for changes affecting House and Senate space; and renaming/reforming the Office of Supplier Diversity to the Office of Supplier Development with expanded assistance to Florida-based small businesses.

Members extensively questioned the formulary and supplier diversity elements. Representative Gantt pressed whether the assessment requires new staffing or a fiscal note; the sponsor said implementation should be absorbed with existing resources. On the formulary, members asked whether a physician’s finding of 'medically necessary' would still permit access to excluded medications; the sponsor explained that a formulary would permit excluded drugs but that a prior authorization process would remain available and that the change may lengthen the approval process for some medications. Members asked whether current prescriptions would be grandfathered; the sponsor said the Department of Management Services would create the formulary in coordination with the prescription benefit manager and would provide excluded-drug lists to the governor and both houses before implementation.

A substantial portion of discussion focused on removal of statutory language referencing minority- and women-focused supplier diversity provisions. Representative Gant and Representative Robinson argued the committee lacks data to show the compelling state interest underpinning the original statutes has been addressed and urged collection of fiscal and participation metrics before repealing statutory protections; Representative Abbott said she did not have historical fiscal data in committee and argued small and minority-owned businesses would still compete for contracts without preference factors.

Representative Robinson stated she would oppose the measure at this time citing potential harms to employees and minority-business outcomes. Representative Gant said the change is premature without data and recounted political pressures related to prior debates. Sponsor Abbott and other supporters emphasized the need to address the health-insurance trust fund deficit, citing a projected $362,000,000 shortfall and a sponsor-cited estimate of $126,000,000 in savings from implementing a formulary, and argued the formulary would include exception processes rather than an absolute ban on medications.

The committee held a roll call. PCB SAB 26-01 was reported favorably; roll-call entries record several 'yes' votes and three 'no' votes from Representatives Edmonds, Robinson and Gant. The subcommittee adjourned.