LA SB194

Pharmacy benefit managers (PBMs) may negotiate rebates and fees but cannot retain them; PBMs may only derive income from pharmacy benefit management fees that do not exceed the value of services actually performed

Prohibits spread pricing, defined as charging health plans more for a prescription drug than what the PBM pays the pharmacy (minus a management fee), and prohibits Effective Rate Pricing for local pharmacies

Requires PBM contracts with insurers entered into, amended, or renewed after January 1, 2026 to specify all forms of revenue paid to the PBM and acknowledge that spread pricing is prohibited

Authorizes annual audits of PBMs by the commissioner of insurance and contracted insurers/health plans, with PBMs required to respond within 30 days and provide detailed claims data, rebate information, and reimbursement records

Violations punishable by civil monetary penalty up to $1,000 per claim; effective upon governor's signature