SB 426
Enacts provisions relating to payments for prescription drugs
Sponsor:
LR Number:
1664S.01I
Last Action:
3/2/2023 - Second Read and Referred S Insurance and Banking Committee
Journal Page:
Title:
Effective Date:
August 28, 2023

Current Bill Summary

SB 426 - Under this act, no health carrier or pharmacy benefits manager (PBM) shall discriminate against a covered entity or a specified pharmacy, as such terms are defined in the act, by:

• Reimbursing a covered entity or specified pharmacy for a quantity of a 340B drug, as defined in the act, in an amount less than the carrier or PBM would pay to any other similarly situated pharmacy for such quantity of the drug on the basis that the entity or pharmacy is a covered entity or specified pharmacy, as defined in the act, or that the entity or pharmacy dispenses 340B drugs. (Section 376.414.2(1));

• Imposing any terms or conditions on covered entities or specified pharmacies which differ from the terms or conditions applicable to other similarly situated pharmacies on the basis that the entity or pharmacy is a covered entity or specified pharmacy or dispenses 340B drugs, including but not limited to certain terms and conditions described in the act. (Section 376.414.2(2));

• Interfering with an individual's choice to receive a 340B drug from a covered entity or specified pharmacy. (Section 376.414.2(3));

• Requiring a covered entity or specified pharmacy to identify 340B drugs, either directly or through a third party. (Section 376.414.2(4)); or

• Refusing to contract with a covered entity or specified pharmacy for reasons other than those that apply equally to entities or pharmacies that are not covered entities or specified pharmacies, or on the basis that the entity or pharmacy is a covered entity or specified pharmacy, or on the basis that the entity or pharmacy is described as a covered entity under provisions of federal law. (Section 376.414.2(5)).

The Director of the Department of Commerce and Insurance shall impose a civil penalty on any PBM violating certain provisions of the act, not to exceed $5,000 per violation per day. (Section 376.414.3).

These provisions are identical to provisions in HB 197 (2023) and provisions in SB 921 (2022), and similar to provisions in HCS/HB 442 (2023), provisions in SB 402 (2023), SB 679 (2023), HB 198 (2023), HB 1330 (2023), provisions in HCS/HB 1677 (2022), provisions in SB 1129 (2022), provisions in HB 2305 (2022), provisions in SB 971 (2020), provisions in HCS/HB 2412 (2020), provisions in the truly agreed to and finally passed SS/SCS/HCS/HB 1682 (2020), provisions in HB 1910 (2020), provisions in SB 413 (2019), and provisions in HB 1165 (2019).

ERIC VANDER WEERD

Amendments

No Amendments Found.