SB602 Summary

• Prohibits managed care contracts entered after June 30, 2021 from using maximum allowable cost (MAC) basis for pharmacy reimbursements and voids existing MAC provisions in current contracts.

• Requires pharmacy benefit managers to reimburse 340B pharmacies and independent or rural pharmacies at rates no less than the "rural rate," with 30 days' notice required before rate changes.

• Prohibits pharmacy benefit managers from engaging in unfair methods of competition or unfair practices, and prevents them from restricting pharmacists from disclosing cost-sharing information or alternative affordable drugs to patients.

• Requires pharmacy benefit managers to submit annual transparency reports to the insurance commissioner detailing rebates received, retained rebates, and utilization data; commissioner must report findings to legislature annually.

• Increases pharmacy benefit manager registration and renewal fees (amounts left blank in bill text) and subjects violations to penalties under Hawaii Revised Statutes chapters 480 and 481; effective July 1, 2050.