Senate Bill No. by Senator Harris aims to regulate pharmacy benefit managers (PBMs) in Louisiana by enacting new provisions under R.S. 22:1657.1 and repealing R.S. 22:1856(F). The bill establishes that PBMs may negotiate but cannot retain rebates and fees, deriving income solely from pharmacy benefit management fees for services provided to insurers or health plans. It also mandates annual audits of PBMs by the commissioner of insurance and any contracted insurers or health plans, requiring PBMs to provide requested information within 30 days and certify the accuracy of the information submitted.

Additionally, the bill stipulates that contracts between PBMs and insurers or health plans, effective from January 1, 2027, must specify all forms of revenue, including management fees, and acknowledge that spread pricing is prohibited. The legislation emphasizes that the state will regulate PBMs and insurers only to the extent allowed by applicable law. The repeal of the previous law under R.S. 22:1856(F) reflects a shift in regulatory focus, aligning with the new provisions introduced in this bill.

Statutes affected:
SB377 Original: 22:1856(F)