LA SB387

Establishes duties of care, good faith, and fair dealing that pharmacy benefit managers (PBMs) must owe to enrollees, health plans, and providers, with enrollee interests taking priority over other parties

Prohibits PBMs from retaining rebates and fees, limiting their income to pharmacy benefit management fees that cannot be based on drug prices, savings generated, or patient cost-sharing amounts

Authorizes the Insurance Commissioner and contracted health plans to audit PBMs once per calendar year, with PBMs required to provide requested information within 30 days and certify its accuracy

Imposes civil penalties of $25,000 per violation with no aggregate maximum, and requires license suspension or revocation if violations are not corrected within 30 days of notice

Requires PBM contracts entered into or renewed after January 1, 2027 to specify all revenue forms and acknowledge that spread pricing is prohibited