Bill > HB1584

This bill establishes a comprehensive regulatory framework for pharmacy benefits managers (PBMs) in North Dakota, introducing new licensing requirements, enforcement mechanisms, and administrative penalties. The bill requires PBMs to obtain an annual license from the insurance commissioner, with initial and renewal fees not exceeding $10,000, and mandates that PBMs provide detailed application information, maintain $1 million in financial responsibility, and comply with specific operational standards. Key provisions include prohibiting PBMs from requiring pharmacies to participate in multiple contracts, allowing pharmacies to opt in or out of contracts with appropriate notice, and establishing an enforcement fund to support regulatory oversight. The bill also empowers the insurance commissioner to investigate PBM practices, impose monetary penalties up to $10,000 per violation, and potentially suspend or revoke licenses for non-compliance. Additionally, the legislation creates a special enforcement fund that can receive transfers from wholesaler license fees, appropriates $1.2 million for implementation, and authorizes the commissioner to hire three full-time equivalent positions to enforce the new regulations. The bill is designed to increase transparency and accountability in pharmacy benefits management, with the ultimate goal of potentially reducing prescription drug costs for consumers.

Budget and Finance, Business and Industry

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1584.html