House Bill 740 seeks to amend existing laws governing pharmacies and pharmacy benefit managers by implementing new regulations aimed at enhancing transparency and fairness in the prescription drug payment process. The bill prohibits specific fees that pharmacy benefit managers and third-party payers can impose on pharmacies, such as those related to claim submissions and network enrollment. It also establishes that reimbursements to independent pharmacies must be at least equal to the national average drug acquisition cost plus a minimum professional dispensing fee of $15, which will be adjusted annually for inflation. Additionally, the bill bans effective rate contracting, which ties reimbursement rates to aggregated claims, and mandates regular updates to maximum allowable cost lists.

Furthermore, the legislation enhances the rights of pharmacies by allowing participation in class-action lawsuits, enabling the disclosure of reimbursement information, and permitting charges for shipping and handling of prescriptions. It also removes previous restrictions on insurers regarding the coverage of brand-name drugs and allows for a 90-day supply of medications from in-state mail service pharmacies. The bill introduces new definitions related to fund recoupment and maximum allowable costs, amending various sections of the Montana Code Annotated (MCA) to reflect these changes. The provisions of the act will take effect for conduct occurring on or after October 1, 2025, and will remain in effect until June 30, 2029.

Statutes affected:
LC Text: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1(5): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_1: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(5): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(6): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(7): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(8): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2(9): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_2: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(10): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(11): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(12): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(13): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(14): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(15): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(16): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(5): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(6): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(7): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(8): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3(9): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_3: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4(5): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_4: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_5(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_5(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_5(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_5(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_5: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177, 39-71-727
HB0740_X(1): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(10): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(11): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(2): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(3): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(4): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(5): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(6): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(7): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(8): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X(9): 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177
HB0740_X: 33-2-2005, 33-22-170, 33-22-171, 33-22-172, 33-22-175, 33-22-177