The bill SB 387 aims to enhance the regulation of pharmacy benefit managers (PBMs) in Louisiana by promoting transparency and accountability in the management of prescription drug benefits. Key provisions include the establishment of a reverse auction process for procuring PBM services, which must occur by July 1, 2028, and the requirement for PBM contracts to comply with specific regulations. The bill prohibits PBMs from taking actions that would increase drug costs or limit access to medications, while also allowing for the imposition of fees on PBMs to cover implementation and enforcement costs. Additionally, it introduces new definitions related to PBM operations and outlines penalties for violations, including civil monetary penalties of $25,000 per violation.

Amendments to the bill clarify the assessment of service fees, the sharing of confidential information with a Prescription Drug Affordability Board, and the requirement for comparable drugs to be offered within the same formulary tier. The bill also mandates that PBMs must not retain rebates and fees, allows for annual audits by the commissioner of insurance or contracted health plans, and ensures a 60-day continuity of care for enrollees when formulary changes occur. Overall, SB 387 seeks to create a more accountable framework for pharmacy benefit management in Louisiana, while retaining existing laws regarding reverse auctions for PBM services.

Statutes affected:
SB387 Original: 44:1(B)(11)
SB387 Engrossed: 22:1(B)(2), 22:1865(A), 44:1(B)(11)
SB387 Reengrossed: 22:1(B)(2), 22:1865(A), 44:1(B)(11)
SB387 Enrolled: 22:1(B)(2), 22:1865(A), 22:1865(G), 39:1(A), 39:1(D), 39:1(D)(6), 44:1(B)(11)
SB387 Act 914: 22:1(B)(2), 22:1865(A), 22:1865(G), 39:1(A), 39:1(D), 39:1(D)(6), 44:1(B)(11)
Conference Committee Report, #4456, House Proposed, Senate Adopted: 39:1(A), 39:1(D), 39:1(D)(6)