This bill aims to improve the regulation and transparency of pharmacy benefit managers (PBMs) in New Hampshire by introducing new definitions and establishing a fiduciary duty for PBMs to their health carrier clients. Key provisions include prohibiting PBMs from retaining any portion of spread pricing, which is the difference between what they charge health carriers and what they reimburse pharmacies. The bill also revises the definition of "rebate" to cover a wider range of discounts and price concessions from pharmaceutical manufacturers, while introducing new terms such as "affiliate," "aggregate retained rebate ratio," and "spread pricing."

Furthermore, the bill mandates increased transparency in the pharmaceutical market, addressing concerns over rising prescription drug costs and the lack of competition among the leading PBMs. It requires PBMs to submit quarterly reports to the Insurance Commissioner detailing health benefit plans administered and rebates collected, while ensuring that this information remains confidential. The bill also prohibits PBMs from imposing accreditation standards that exceed state or federal requirements and bans financial incentives that could pressure covered persons to use specific pharmacy providers affiliated with the PBM. The bill is set to take effect on October 1, 2026, and includes a severability clause to maintain the validity of its provisions.

Statutes affected:
Introduced: 402-N:1
SB547 text: 402-N:1