SB227 Alabama 2021 Session
Signed by Governor
Bill Summary
Sponsors
Session
Regular Session 2021
Title
Pharmacy benefits managers, practices relating to patient steering, price discrimination, fiduciary duty to client, price disclosure, etc. regulated, Dept of Insurance, duties and authorities revised, Act 2019-457, 2019 Reg. Sess., sections amended and renumbered; Secs. 27-45A-6 to 27-45A-11, inclusive, 27-45A-13 added; Secs. 27-45A-3, 27-45A-4, 27-45A-5 am'd.
Description
<p class="bill_description"> Under existing law, pharmacy benefits
managers must be licensed by the Department of
Insurance. Pharmacy benefits managers provide
claims processing services or prescription drug and
other pharmacist services, or both, to health
benefit plans</p><p class="bill_description">
This bill would require insureds to receive
certain prescription drug rebates and discounts</p><p class="bill_description">
This bill would prohibit a pharmacy benefits
manager from reimbursing a pharmacy in an amount
less than the amount the pharmacy benefits manager
reimburses an affiliated pharmacy of the pharmacy
benefits manager and from paying a pharmacy for
prescription drugs an amount different than the
amount the pharmacy benefits manager contracted
with the health benefit plan to charge the health
benefit plan for those same prescription drugs</p><p class="bill_description">
This bill would prohibit a pharmacy benefits
manager from requiring or steering an insured to
use a mail-order pharmacy or a pharmacy affiliated
with a pharmacy benefits manager</p><p class="bill_description">
This bill would require a pharmacy benefits
manager to act as a fiduciary and annually report
drug rebate information to health insurers and
health benefit plans</p><p class="bill_description">
This bill would prohibit a pharmacy benefits
manager from imposing conditions to influence an
insured in selecting a certain pharmacy or
otherwise limiting an insured's ability to select a
pharmacy of his or her choice</p><p class="bill_description">
This bill would prohibit a pharmacy benefits
manager from limiting certain powers of a pharmacy
or pharmacist to provide pharmacist services to
insureds</p><p class="bill_description">
This bill would provide further for the
Commissioner of Insurance to enforce laws relating
to pharmacy benefits managers and would provide
civil penalties for violations</p><p class="bill_description">
This bill would also provide conforming
changes to definitions</p><p class="bill_entitled_an_act"> Relating to health care; to amend Sections 3 through
of Act 2019-457, 2019 Regular Session, now appearing as
Sections 27-45A-3, 27-45A-4, and 27-45A-5, Code of Alabama
1975; to amend and renumber Section 6 of Act 2019-457, 2019
Regular Session, now appearing as Section 27-45A-6, Code of
Alabama 1975; and to add Sections 27-45A-6, 27-45A-7,
27-45A-8, 27-45A-9, 27-45A-10, 27-45A-11, and 27-45A-13 to the
Code of Alabama 1975; to renumber Section 7 of Act 2019-457,
2019 Regular Session, now appearing as Section 27-45A-7, Code
of Alabama 1975; to require insureds to receive certain
prescription drug rebates and discounts; to prohibit a
pharmacy benefits manager from reimbursing a pharmacy in an
amount less than the amount the pharmacy benefits manager
reimburses an affiliated pharmacy of the pharmacy benefits
manager and from paying a pharmacy for prescription drugs an
amount different than the contracted amount; to prohibit
pharmacy benefits managers from steering an insured to use a
mail-order pharmacy or a pharmacy benefits manager affiliate;
to require a pharmacy benefits manager to act as a fiduciary
to its clients and report certain drug rebates; to prohibit
pharmacy benefits managers from limiting an insured's ability
to select a pharmacy of his or her choice; to prohibit a
pharmacy benefits manager from limiting certain powers of a
pharmacy or pharmacist; to revise definitions; to provide
further for the Commissioner of Insurance to enforce laws
relating to pharmacy benefits managers; and to provide civil
penalties for certain violations; and to make conforming
changes to definitions.
</p>
Subjects
Pharmacies and Pharmacists
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| April 29, 2021 | S | Assigned Act No. 2021-341. |
| April 29, 2021 | H | Signature Requested |
| April 29, 2021 | S | Enrolled |
| April 29, 2021 | H | Concurred in Second House Amendment |
| April 29, 2021 | S | Butler motion to Concur In and Adopt adopted Roll Call 1214 |
| April 29, 2021 | S | Concurrence Requested |
| April 29, 2021 | H | Motion to Read a Third Time and Pass adopted Roll Call 1055 |
| April 29, 2021 | H | Motion to Adopt adopted Roll Call 1054 |
| April 29, 2021 | H | Ledbetter Amendment Offered |
| April 29, 2021 | H | Third Reading Passed |
| April 22, 2021 | H | Read for the second time and placed on the calendar |
| April 8, 2021 | H | Read for the first time and referred to the House of Representatives committee on Health |
| April 8, 2021 | S | Engrossed |
| April 8, 2021 | S | Motion to Read a Third Time and Pass adopted Roll Call 867 |
| April 8, 2021 | S | Butler motion to Adopt adopted Roll Call 866 |
| April 8, 2021 | S | Butler Amendment Offered |
| April 8, 2021 | S | Butler motion to Adopt adopted Roll Call 865 |
| April 8, 2021 | S | Butler Amendment Offered |
| April 8, 2021 | S | Butler motion to Adopt adopted Roll Call 864 |
| April 8, 2021 | S | Banking and Insurance first Substitute Offered |
| April 8, 2021 | S | Third Reading Passed |
| April 7, 2021 | S | Read for the second time and placed on the calendar with 1 substitute and |
| February 11, 2021 | S | Read for the first time and referred to the Senate committee on Banking and Insurance |
Bill Calendar
| Type | Date | Location | Description |
|---|---|---|---|
| Hearing | April 21, 2021 | Room 206 at 09:30 | House HLTH Hearing |
| Hearing | April 7, 2021 | Room 825 ***TIME CHANGE*** at 13:00 | Senate B&I Hearing |
| Hearing | March 10, 2021 | Room 825 (SB 306 REMOVED) at 11:30 | Senate B&I Hearing |
Bill Text
Bill Votes
Bill Documents
| Type | Link |
|---|---|
| Bill Text | SB227 Alabama 2021 Session - Introduced |
| Bill Text | SB227 Alabama 2021 Session - Engrossed |
| Bill Text | SB227 Alabama 2021 Session - Enrolled |
| Bill Amendments | Senate Banking and Insurance first Substitute Offered |
| Bill Amendments | Senate Butler Amendment Offered |
| Bill Amendments | Senate Butler Amendment Offered |
| Bill Amendments | House Ledbetter Amendment Offered |
| Fiscal Note | Fiscal Note - SB227 for Banking and Insurance |
| Fiscal Note | Fiscal Note - SB227 for Banking and Insurance |
| Fiscal Note | Fiscal Note - SB227 for Health |