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AL SB236

Bill

Status

Introduced

2/25/2020

Primary Sponsor

Tom Butler

Click for details

Origin

Senate

Regular Session 2020

AI Summary

SB236 Summary

  • Prohibits pharmacy benefits managers from steering patients to affiliated pharmacies through ordering patients to affiliated pharmacies, offering plan designs requiring affiliated pharmacies, or advertising/marketing affiliated pharmacies.

  • Prohibits pharmacy benefits managers from transferring or sharing patient prescription data with affiliated pharmacies for commercial purposes, except for limited purposes of pharmacy reimbursement, formulary compliance, pharmacy care, or utilization review.

  • Prohibits health benefit plans from requiring covered persons to obtain prescription drugs exclusively from mail-order distributors or affiliated pharmacies, and requires equal co-payments and conditions for non-affiliated pharmacy providers.

  • Requires pharmacy benefits managers to report annually to clients the aggregate amount of rebates received from pharmaceutical manufacturers and the amount of rebates not passed through to clients.

  • Establishes civil penalties up to $5,000 per violation, with enforcement by the Insurance Commissioner through complaints, investigations, and remedies including injunctive relief, restitution, and license suspension or revocation.

Legislative Description

Pharmacy Benefits Managers, steering patients to affiliated pharmacies prohibited, mining patient data prohibited, requiring mail order pharmacies by health insurance plan prohibited, Act 2019-457, 2019 Reg. Sess., sections amended and renumbered; Secs. 27-45A-6 to 27-45A-10, inclusive, 27-45A-12 added; Secs. 27-45A-3, 27-45A-4, 27-45A-5 am'd.

Pharmacies and Pharmacists

Last Action

Read for the first time and referred to the Senate committee on Banking and Insurance

2/25/2020

Committee Referrals

Banking and Insurance2/25/2020

Full Bill Text

No bill text available