SB227 Alabama 2021 Session

Summary

Primary Sponsor

Tom Butler Senator

Republican

Co-Sponsors

Gerald H. AllenWill BarfootWilliam “Bill” M. BeasleyGarlan GudgerJimmy HolleySteve LivingstonDel MarshArthur OrrDan RobertsClay ScofieldRodger SmithermanLarry Stutts

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

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.

This bill would require insureds to receive certain prescription drug rebates and discounts.

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.

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.

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.

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.

This bill would prohibit a pharmacy benefits manager from limiting certain powers of a pharmacy or pharmacist to provide pharmacist services to insureds.

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.

This bill would also provide conforming changes to definitions.

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Subjects

Pharmacies and Pharmacists