This bill amends and reenacts several sections of the North Dakota Century Code related to pharmacy benefits managers (PBMs) and introduces new provisions aimed at enhancing regulation and oversight of their practices. Key amendments include the definition of "covered entity," which now excludes certain limited-benefit health insurance policies that do not include prescription drug coverage. The bill also establishes that pharmacy contracts must be opt-in with a minimum response time of thirty days, and pharmacies must be allowed to opt-out of contracts with a ninety-day notice. Additionally, it mandates that the commissioner examine contracts between covered entities and PBMs to ensure that payments received are appropriately applied to reduce rates or benefit covered individuals.

New sections are created to provide enforcement mechanisms and administrative penalties for violations of the chapter. The commissioner is granted powers to enforce the regulations, including subpoena authority, and can impose monetary penalties, license suspensions, or revocations for non-compliance. The bill also allows for restitution to affected entities or individuals and ensures that PBMs have the right to a hearing if penalties are imposed. This legislation is declared an emergency measure, indicating its urgency for implementation.

Statutes affected:
INTRODUCED: 26.1-27.1-01, 26.1-27.1-02, 26.1-27.1-04, 26.1-27.1-06, 26.1-27.1-07