HI HB24

Establishes fiduciary duties for pharmacy benefit managers to act with care, skill, prudence, and diligence on behalf of covered entity clients and requires disclosure of conflicts of interest.

Prohibits requiring patient cost-sharing exceeding the lesser of copayment, allowable claim amount, cash price, or pharmacy reimbursement amount to prevent inflated out-of-pocket costs.

Requires licensed pharmacy benefit managers to submit annual transparency reports to the insurance commissioner detailing rebates received from pharmaceutical manufacturers, retained rebates, and retained rebate percentages.

Replaces pharmacy benefit manager registration requirement with a licensing requirement, valid for one calendar year, with $140 application and renewal fees.

Increases penalties for unlicensed operation from $500 to not more than $5,000 per day and expands grounds for license suspension or revocation to include fraud, consumer complaints, failure to pay fees, or non-compliance with chapter requirements.