summary
Introduced
02/13/2020
02/13/2020
In Committee
11/08/2021
11/08/2021
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill requires carriers to pass prescription drug savings on to consumers. The bill provides that all compensation paid by a pharmaceutical manufacturer to a pharmaceutical benefits manager as a result of negotiations of a reduced price for a pharmaceutical between a pharmacy benefits manager and a manufacturer, in relation to a contract between a pharmacy benefits manager and a carrier related to its prescription drug benefits, shall be remitted to and retained by the carrier and must be used by the carrier to lower the premium for covered persons under the carrier's health benefits plan. In addition, the bill provides that a carrier shall annually file with the commissioner a report demonstrating how the carrier has complied with the provisions of the bill. Under the bill, "compensation" is defined as any direct or indirect financial benefit, including, but not limited to, rebates, discounts, credits, fees, grants, charge-backs, or other payments or benefits of any kind.
AI Summary
This bill requires carriers to pass prescription drug savings on to consumers. The bill mandates that all compensation paid by a pharmaceutical manufacturer to a pharmacy benefits manager as a result of negotiations of a reduced price for a pharmaceutical must be remitted to and retained by the carrier, and used to lower the premium for covered persons or allow for direct remittance to the covered person to reduce their out-of-pocket costs. The bill also requires carriers to annually file a report with the commissioner demonstrating compliance. The key terms are "carrier" (an insurance company, health service corporation, etc.), "pharmacy benefits manager" (an entity that administers prescription drug benefits), and "compensation" (any direct or indirect financial benefit such as rebates, discounts, or payments).
Committee Categories
Budget and Finance, Business and Industry
Sponsors (2)
Last Action
Reported from Senate Committee with Amendments, 2nd Reading (on 11/08/2021)
Official Document
bill text
bill summary
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bill summary
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bill summary
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