SB344 Summary

• Prohibits pharmacy benefits managers from reimbursing pharmacies at lower rates than affiliated pharmacies for the same services and bans "spread pricing" where contracted prices to health plans differ from amounts paid to pharmacies.

• Prevents pharmacy benefits managers from steering or requiring patients to use mail-order pharmacies or affiliated pharmacies through mandatory conditions, plan design requirements, or cost penalties.

• Requires pharmacy benefits managers to act as fiduciaries to their clients and annually report aggregate rebate amounts received from pharmaceutical manufacturers and rebates not passed through to clients.

• Prohibits pharmacy benefits managers from restricting pharmacists' ability to discuss prescription costs, recommend affordable alternatives, provide delivery services, or limiting patient choice of pharmacy.

• Establishes Commissioner of Insurance enforcement authority with civil penalties up to $5,000 per violation, including license suspension or revocation; bill becomes effective three months after passage.