HB2817 Summary

• Requires pharmacy benefits managers (PBMs) and insurers to pass at least 85% of all rebates received to enrollees by reducing their cost sharing (deductibles, copayments, coinsurance) at the point of sale.

• Establishes administrative penalties of $100-$10,000 per violation for noncompliance with rebate pass-through requirements and prohibits PBMs from disclosing actual rebate amounts as these are protected trade secrets.

• Prohibits PBMs from charging pharmacies fees related to claim adjudication or network participation, engaging in spread pricing, denying preferred network status to willing providers, or retroactively denying reimbursement except for fraud or audit corrections.

• Creates PBM licensing requirements administered by the Insurance Department, including application disclosures regarding management, ownership, surety bonds, and criminal history, with authority for the Attorney General to suspend, revoke, or fine PBMs for violations.

• Effective date: November 1, 2025.