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Committee advances PBM transparency bill, removes 'fiduciary' language after stakeholder talks
Summary
HB 12 17, a bill to increase transparency and oversight of pharmacy benefit managers, was reported with amendments after the committee removed a fiduciary‑duty standard in favor of good‑faith/fair‑dealing language and accepted technical changes.
Representative Echols presented House Bill 12 17 to require pharmacy benefit managers operating in Louisiana to disclose revenue streams, fees, rebates and affiliated transactions, and to establish reporting, audit authority and civil penalties for noncompliance. The sponsor described the bill as "about honesty in the prescription drug market" and said its goal is to make PBM revenue and arrangements auditable to lower costs for consumers.
The committee adopted a series of technical and substantive amendments, including removing a fiduciary duty standard and replacing it with a good‑faith and fair‑dealing standard to align with industry practice and related bills. Phil Cristinelli of the Pharmaceutical Care Management Association said the amendment was appreciated and noted that recent federal action (the Consolidated Appropriations Act provisions) already addresses many transparency questions for plans covered by federal law.
Representative Echols said he will continue to pursue PBM reforms and framed the bill as a pro‑market transparency measure that can return savings to patients over time. The committee accepted multiple technical amendments and reported HB 12 17 favorably with amendments.
