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Committee adopts technical PBM amendment clarifying rebate pass‑through
Summary
While moving from the SB 330 hearing to work on PBM reform (SB 360), the committee adopted a technical amendment clarifying that rebates not applied to reduce patient cost sharing must be passed back to the health plan and not retained by PBMs; the amendment passed by voice vote.
After closing the public hearing on Senate Bill 330, the committee shifted to working on Senate Bill 360, a PBM reform package. Committee staff circulated a two‑page overview and proposed two technical amendments addressing rebate pass‑through and cost‑sharing language.
Eileen described the first amendment as striking a requirement that point‑of‑sale cost‑sharing be calculated after reducing price by 100% of rebates and instead amending subsection language so that any rebate not applied to reduce a covered person's defined cost‑sharing "shall be passed on to the health plan." The amendment also replaced the term "unrestricted" with "at no cost" in a provision about commissioner access. Staff said corresponding reporting changes were added in Section 3.
Steve Carr, general counsel for the Kansas Department of Insurance, told the committee the intent "was to have the rebates pass through to the plan" and that the change makes clear the plan, not the PBM, determines whether rebates lower copayments, coinsurance or deductibles. "So that's why that language was amended just to make that very clear and to make it permissive," Carr said.
Senator Agbright moved the amendment and Senator Fagg seconded. After brief discussion, the committee took a voice vote; the chair called 'aye' and no opposed responses were voiced, and the motion passed.
Committee members said they would resume work on the PBM bill the following day. The amendment directs the Department of Insurance to receive reporting consistent with the clarified rebate pass‑through and assigns the department to help implement related reporting requirements.
