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Senate panel strips copay‑maximizer language and advances pharmacy reimbursement bill after heated debate

Senate Committee on Insurance · May 6, 2026
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Summary

After hours of testimony from pharmacists, insurers, doctors and patients, the committee removed a contested 'copay maximizer' provision from House Bill 1236 and reported the pharmacy reimbursement bill favorably as amended; the bill retains a professional dispensing‑fee floor and an acquisition‑cost‑based reimbursement formula.

Representative Jason DeWitt presented House Bill 1236 as a compromise measure intended to help independent pharmacies. The bill ties pharmacy reimbursement to a clear acquisition‑cost benchmark (NAADAC with fallbacks to invoice or WAC), establishes a professional dispensing fee floor tied to Louisiana Medicaid’s dispensing fee, strengthens the appeals process (requiring PBMs to make pharmacies whole if an appeal is won), and gives the commissioner authority to review claim‑level data for compliance. The author said the bill was negotiated with Louisiana Blue and local pharmacy representatives.

Supporters at the hearing — including representatives of the Louisiana Independent Pharmacy Association (LIPA) and Louisiana Blue — described the bill as a necessary fix after independent pharmacies were dispensing at a loss. A joint support letter from LIPA and Blue Cross said the compromise "builds on Act 4 74" and would make pharmacies whole retroactive to Jan. 1, 2026, contingent on the full package that included a copay‑maximizer provision. Malam Ford (Louisiana Blue) and LIPA representatives said the package together would allow employers and plans to offset high specialty costs.

Opponents — physicians, patient advocates and PBM representatives — called the copay‑maximizer portion harmful. Rheumatologist Madeline Feldman testified that maximizer programs can strip co‑pay assistance from patients’ deductible and out‑of‑pocket accounting, leaving patients exposed to large costs despite manufacturers’ copay contributions. Feldman said published analyses show maximizers can increase patient cost share and that federal procurement guidance has rejected plans that use maximizers for some employee programs. Patient witnesses described real‑world impacts for families whose manufacturer assistance did not count toward deductibles.

PBMs and industry groups, including the Pharmaceutical Care Management Association and Express Scripts, warned the bill’s "pass‑through" language requiring PBMs to absorb dispensing fees and prohibiting assignment to plans or pharmacies could be economically unworkable. A PCMA representative said mandating PBMs to bear full dispensing fees without assignment risks disrupting claims processing economics and could raise compliance and constitutional questions if made retroactive.

After multiple rounds of testimony and dozens of stakeholder cards, Senator Edmonds moved in concept to adopt an amendment that deletes the co‑pay maximizer language (remove page 5, lines 1–5) so committee and stakeholders could continue to negotiate that portion. The committee approved the amendment in concept and, with that change, reported HB1236 favorably as amended by voice consent.

What was decided and what remains: The committee advanced the reimbursement formula and dispensing‑fee protections but removed the contested maximizer language to allow further negotiation. Stakeholders on both sides signaled a willingness to continue talks before floor action; the transcript records a commitment not to run the bill on the floor until authors and key senators reconcile outstanding concerns.