TX HB970

Requires pharmacy benefit managers (PBMs) to pass through the full amount of any prescription drug price reductions, discounts, or rebates obtained from manufacturers to patients at the point of dispensing at the pharmacy

Mandates that any coinsurance charged to patients must be calculated based on the net price after all manufacturer discounts and rebates are applied, rather than the higher list price

Applies to most health benefit plans including individual and group insurance policies, HMOs, state employee plans, teacher retirement plans, and local government employee coverage, but exempts Medicaid, CHIP, TRICARE, and workers' compensation

Imposes civil penalties of three times the unreflected price reduction amount plus $5,000 per violation for PBMs that fail to comply, with enforcement authority granted to the Texas Attorney General

Takes effect September 1, 2025, and applies to health benefit plans delivered, issued, or renewed on or after January 1, 2026