House passes pharmacy benefit manager reform aiming to protect patients and small businesses
TALLAHASSEE, Fla. (FLV) – The House passed the “Prescription Drug Reform Act” on Tuesday which includes pharmacy benefit manager, or PBM, reforms to protect patients and small businesses from PBM influence over the prescription drug coverage market.
The bill, which was sponsored by Rep. Linda Chaney, R-St. Petersburg, unanimously passed through the House 118-0. Sen. Jason Brodeur, R-Lake Mary, is carrying the bill in the Senate.
The legislation will fully regulate PBMs as insurance administrators under the Office of Insurance Regulation, rather than the current simple registration requirement.
It will require PBMs to submit to examinations and investigations, make available certain documents and records, and comply with record keeping requirements.
The legislation will regulate PBM contracts with pharmacy benefit plans and programs.
It will also regulate PBM contracts with pharmacies, including claims payment requirements, and prohibit many current practices.
The legislation will impose specific pharmacy network standards on PBMs.
It will require drug manufacturers to notify the Department of Business and Professional Regulation and the Agency for Health Care Administration of planned drug price increases, and makes that information available to the public.
“Today, the Florida House passed landmark legislation to rein in the high costs of prescription drugs and increase the accessibility of many life-saving medicines. It answers the concern of Floridians who face the decision of whether to pay for their prescriptions instead of their groceries or housing,” House Speaker Paul Renner, R-Palm Coast, said.
“Thank you to Rep. Linda Chaney for her tireless efforts in leading this historic legislation and empowering patients to take control of their prescription drugs,” Renner said.
“Today, we stood firm and clearly said ‘enough is enough’ to powerful PBMs, putting patients with cancer, diabetes, Parkinson’s disease, and other chronic illnesses above profit. It’s as simple as it sounds, and yet it will be truly life-changing for some of our sickest, most vulnerable Floridians and their families,” Chaney said.
The bill is now being sent to the Senate for final passage.
