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  1. Bama Politics
  2. Alabama
  3. Alabama House & Senate Bills
  4. 2021 Alabama Legislative Regular Session
  5. 2021 Alabama Senate Bills
  6. SB227 Alabama 2021 Session

SB227 Alabama 2021 Session

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Signed by Governor

Bill Summary

Sponsors
  • Tom Butler
  • Gerald H. Allen
  • Will Barfoot
  • William “Bill” M. Beasley
  • Garlan Gudger
  • Jimmy Holley
  • Steve Livingston
  • Del Marsh
  • Arthur Orr
  • Dan Roberts
  • Clay Scofield
  • Rodger Smitherman
  • Larry 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
<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

Download SB227 Alabama 2021 Session PDF

Bill Votes

Butler motion to Concur In and Adopt Roll Call 1214
2021-04-29
Chamber: Senate
Result: Passed
Motion to Read a Third Time and Pass Roll Call 1055
2021-04-29
Chamber: House
Result: Passed
Motion to Adopt Roll Call 1054
2021-04-29
Chamber: House
Result: Passed
HBIR: Ledbetter motion to Adopt Roll Call 1053
2021-04-29
Chamber: House
Result: Passed
Motion to Read a Third Time and Pass Roll Call 867
2021-04-08
Chamber: Senate
Result: Passed
Butler motion to Adopt Roll Call 866
2021-04-08
Chamber: Senate
Result: Passed
Butler motion to Adopt Roll Call 865
2021-04-08
Chamber: Senate
Result: Passed
Butler motion to Adopt Roll Call 864
2021-04-08
Chamber: Senate
Result: Passed
SBIR: Butler motion to Adopt Roll Call 863
2021-04-08
Chamber: Senate
Result: Passed

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
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