Senate Update from Sen. Rob Standridge; May 5-8
With just three weeks remaining in this year’s legislative session, conference committees will soon begin to meet as we attempt to reach compromise on legislation. Budget negotiations have begun in earnest, as legislative leaders and the governor must reach an agreement in principal on the state’s fiscal year 2015 budget prior to the Legislature’s planned May 30 sine die adjournment. I look forward to working with my fellow legislators as we begin deliberations on budget related issues in the coming weeks.
I am very pleased legislation I have sponsored to allow for transparency within the pharmacy benefits management structure has advanced to the desk of the governor. House Bill 2100 will give local, privately-run pharmacies a clear understanding of Pharmacy Benefit Manager’s contracts. The bill also enables the Insurance Department to provide proper oversight on the matter.
The bill will:
Require the Insurance Department to adopt certain licensure procedures for PBMs, which include the completion of an application form, the payment of a requisite fee and the evidence of the procurement of a surety bond. The department may also suspend, revoke or refuse to issue or renew a license for noncompliance with the rules set by the Department.
Establish new guidelines requiring pharmacy benefit managers to update the Maximum Allowable Cost (MAC) list every seven days, and set statutory requirements for drugs allowed to be placed on the MAC list.
Give pharmacists and pharmacy benefit managers ten days to appeal and respond to challenges to MAC pricing.