House Bill No. by Representative Echols aims to enhance regulations surrounding pharmacy benefit managers (PBMs) in Louisiana. The bill mandates that PBMs reimburse under-reimbursed dispensing fees to licensed pharmacies that are not owned or affiliated with the PBM. It prohibits PBMs from assigning the costs of these reimbursements to health plans or members. Additionally, the bill establishes that PBMs cannot operate pharmacies that they or their subsidiaries own or contract with. The legislation also outlines specific guidelines for dispensing fees, including a minimum fee of twelve dollars per prescription, and imposes penalties for violations, including potential imprisonment and fines for individuals involved in willful misconduct.

Furthermore, the bill amends existing laws to clarify the fiduciary duties of PBMs, requiring them to act with good faith and transparency towards beneficiaries and contracted entities. It mandates that PBMs disclose any financial arrangements with drug manufacturers and prohibits them from retaining certain payments based on drug sales volume. The provisions of the bill are set to have both prospective and retroactive applications, with specific effective dates for different sections. Overall, the bill seeks to improve accountability and fairness in the operations of pharmacy benefit managers in Louisiana.

Statutes affected:
HB919 Original: