KY HB512

Requires insurers, pharmacy benefit managers, and pharmacy benefits administrators to calculate an insured's prescription drug cost sharing at the point of sale, with at least 85% of rebates received or estimated to be received passed through to reduce the insured's cost sharing amount.

Mandates that any rebates not used to reduce cost sharing must be passed on to the health plan to reduce premiums charged to insureds; copayments are excluded from this cost sharing calculation requirement.

Prohibits insurers and pharmacy benefit managers from requiring an insured to pay cost sharing greater than what they would pay purchasing the drug without coverage, and from penalizing pharmacies for complying with these provisions.

Protects rebate information on a product-specific, manufacturer-specific, or pharmacy-specific basis as trade secrets, while allowing the Insurance Commissioner to require reporting of this information to determine compliance.

Applies to health plans issued or renewed on or after January 1, 2027, including state employee health plans, self-insured plans, and limited health service benefit plans.