The Kansas Consumer Prescription Protection and Accountability Act aims to enhance the regulation of pharmacy benefits managers (PBMs) and establish standards for pharmacy audits. Key provisions include requirements for auditing entities to maintain confidentiality, provide prior notice to pharmacies, and deliver audit reports within specified timeframes. The bill also outlines conditions for conducting audits, limits penalties, and mandates the use of clinical judgment in certain cases. Additionally, it requires PBMs to disclose information about rebates and pricing practices, prohibits them from charging pharmacies more than submitted charges, and ensures that reimbursements meet or exceed the national average drug acquisition cost. The act emphasizes transparency and accountability in the pharmacy benefits management sector.

The legislation amends existing laws related to PBMs, focusing on licensing, regulation, and definitions associated with health benefit plans. It establishes that no person may operate as a PBM without a valid license from the commissioner and introduces new definitions such as "defined cost sharing" and "maximum allowable cost." The bill also creates a pharmacy benefits manager licensure fund to support the licensing process and outlines conditions for license revocation or suspension. Furthermore, it grants pharmacies the right to inform covered persons about their cost share for prescription drugs and prohibits PBMs from restricting this information. The act will take effect upon publication in the statute book, indicating a significant update to the regulatory framework governing pharmacy benefits in Kansas.

Statutes affected:
As introduced: 40-202, 40-222, 40-3821, 40-3822, 40-3823, 45-229, 40-3824, 40-3825, 40-3826, 40-3827, 40-3828a, 40-3831, 40-3829, 40-3830
As Amended by Senate Committee: 40-202, 40-222, 40-3821, 40-3822, 40-3823, 45-229, 40-3824, 40-3825, 40-3826, 40-3827, 40-3828a, 40-3831, 40-3829, 40-3830