SB 1159 Summary

• Insurance Department must prepare and submit a report to the joint standing committee on insurance by February 1, 2024, regarding pharmacy benefits managers (PBMs).

• Report must analyze PBM prescription drug distribution practices, including spread pricing arrangements, manufacturing rebates, and transparency and accountability measures.

• Report must examine how PBM ownership structure, corporate governance, and vertical integration with health insurance carriers and pharmacies impact consumer health care costs.

• Report must assess potential anticompetitive practices by PBMs in designing drug formularies.