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Bill > HB1244
TN HB1244
TN HB1244AN ACT to amend Tennessee Code Annotated, Title 56, relative to pharmacy benefits managers.
summary
Introduced
02/06/2025
02/06/2025
In Committee
04/16/2025
04/16/2025
Crossed Over
Passed
05/15/2025
05/15/2025
Dead
Signed/Enacted/Adopted
05/15/2025
05/15/2025
Introduced Session
114th General Assembly
Bill Summary
As enacted, removes the aggregate penalty limits for violations of law concerning pharmacy benefits managers; provides that a pharmacy benefits manager regulated under law relative to pharmacy benefits managers is subject to the insurance laws relative to timely reimbursement of health insurance claims and its requirements for timing of payments to pharmacists; provides that a violation of the prompt pay standards is governed by the penalties set out in insurance laws relative to timely reimbursement of health insurance claims. - Amends TCA Title 56.
AI Summary
This bill amends Tennessee law to establish new standards and penalties for pharmacy benefits managers (PBMs), which are companies that manage prescription drug benefits for health insurance plans. The bill makes several key changes: it removes previous limits on aggregate penalties for PBM violations by adding a specific provision for PBM-related violations to the state's penalty framework, requires PBMs to follow existing prompt payment standards when reimbursing pharmacists for health insurance claims, and specifies that violations of these prompt payment standards will be governed by the penalties outlined in a specific existing statute (§ 56-7-109). The bill takes effect immediately upon becoming law and will apply to conduct occurring on or after its effective date. These changes aim to increase accountability and regulate the practices of pharmacy benefits managers in Tennessee by ensuring timely reimbursements and establishing clear consequences for non-compliance.
Committee Categories
Business and Industry, Government Affairs
Sponsors (9)
Brock Martin (R)*,
Aftyn Behn (D),
Rick Eldridge (R),
Andrew Farmer (R),
Monty Fritts (R),
Esther Helton (R),
Dan Howell (R),
Kelly Keisling (R),
Bryan Terry (R),
Last Action
Comp. became Pub. Ch. 446 (on 05/15/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1244&ga=114 |
| BillText | https://publications.tnsosfiles.com/acts/114/pub/pc0446.pdf |
| Amendment 1-0 to HB1244 | https://www.capitol.tn.gov/Bills/114/Amend/HA0285.pdf |
| Fiscal Memo for HA0285 (5191) | https://www.capitol.tn.gov/Bills/114/Fiscal/FM0752.pdf |
| Fiscal Note - SB0881 | https://www.capitol.tn.gov/Bills/114/Fiscal/SB0881.pdf |
| BillText | https://www.capitol.tn.gov/Bills/114/Bill/HB1244.pdf |
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