HB 275 Summary

• Requires pharmacy benefit management companies to register with the insurance commissioner by July 1, 2011, with registrations valid for two years and renewable for an additional two years.

• Prohibits PBM companies from excluding willing providers, restricting patient pharmacy choice, manipulating co-payments to encourage mail-order use, offering different reimbursement rates for identical medications, or reimbursing below acquisition cost plus professional dispensing fees.

• Prohibits PBMs from charging for rebranded drugs with altered National Drug Codes and from shipping drugs through non-resident pharmacies unless registered with the state board of pharmacy.

• Authorizes the insurance commissioner to assess fines up to $10,000 per violation and issue cease-and-desist orders, with violators entitled to administrative hearings and judicial review or binding arbitration under chapter 91.

• Requires PBMs to work with the insurance commissioner on formulary access and mandates annual legislative reports beginning in 2012 on the status of registered PBM companies.