Arkansas 2023 Regular Session

Arkansas House Bill HB1481 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 333 of the Regular Session
32 *ANS226* 02/21/2023 02:36:48 PM ANS226
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54 State of Arkansas 1
65 94th General Assembly A Bill 2
76 Regular Session, 2023 HOUSE BILL 1481 3
87 4
98 By: Representative Achor 5
109 By: Senator J. Boyd 6
1110 7
1211 For An Act To Be Entitled 8
1312 AN ACT TO CREATE THE HEALTHCARE INSURER S HARE THE 9
1413 SAVINGS ACT; TO CREA TE THE ARKANSAS PHAR MACY BENEFITS 10
1514 MANAGER SHARE THE SA VINGS ACT; AND FOR O THER 11
1615 PURPOSES. 12
1716 13
1817 14
1918 Subtitle 15
2019 TO CREATE THE HEALTHCARE INSURER SHARE 16
2120 THE SAVINGS ACT; AND TO CREATE THE 17
2221 ARKANSAS PHARMACY BENEFITS MANAGER SHARE 18
2322 THE SAVINGS ACT. 19
2423 20
2524 21
2625 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
2726 23
2827 SECTION 1. Arkansas Code Title 23, Chapter 79, is amended to add an 24
2928 additional subchapter to read as follows: 25
3029 26
3130 Subchapter 24 — Healthcare Insurer Share the Savings Act 27
3231 28
3332 23-79-2401. Title. 29
3433 This subchapter shall be known and may be cited as the "Healthcare 30
3534 Insurer Share the Savings Act". 31
3635 32
3736 23-79-2402. Definitions. 33
3837 As used in this subchapter: 34
3938 (1) "Defined cost sharing" means a deductible payment or 35
4039 coinsurance amount imposed on an enrollee for a covered prescription drug 36 HB1481
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4443
4544 under the enrollee’s health benefit plan; 1
4645 (2) "Enrollee” means an individual entitled to coverage of 2
4746 healthcare services from a healthcare insurer; 3
4847 (3)(A) "Health benefit plan" means any individual, blanket, or 4
4948 group plan, policy, or contract for healthcare services issued or delivered 5
5049 by a healthcare insurer in this state. 6
5150 (B) "Health benefit plan" does not include: 7
5251 (i) Accident-only plans; 8
5352 (ii) Specified disease plans; 9
5453 (iii) Disability income plans; 10
5554 (iv) Plans that provide only for indemnity for 11
5655 hospital confinement; 12
5756 (v) Long-term-care-only plans that do not include 13
5857 pharmacy benefits; 14
5958 (vi) Other limited-benefit health insurance policies 15
6059 or plans; 16
6160 (vii) Health benefit plans provided under Arkansas 17
6261 Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 18
6362 seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 19
6463 or 20
6564 (viii) Any state or local governmental employee 21
6665 plan; 22
6766 (4)(A) "Healthcare insurer" means a: 23
6867 (i) Health insurance issuer that: 24
6968 (a) Is subject to state law regulating 25
7069 insurance; and 26
7170 (b) Offers health insurance coverage under 42 27
7271 U.S.C. § 300gg-91, as it existed on January 1, 2023; 28
7372 (ii) Health maintenance organization; or 29
7473 (iii) Hospital and medical service corporation. 30
7574 (B) "Healthcare insurer" does not include an entity that 31
7675 provides only dental benefits or eye and vision care benefits ; 32
7776 (5) "Price protection rebate" means a negotiated price 33
7877 concession that accrues directly or indirectly to a healthcare insurer, or 34
7978 other party on behalf of the healthcare insurer, if there is an increase in 35
8079 the wholesale acquisition cost of a prescrip tion drug above a specified 36 HB1481
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8483
8584 threshold; and 1
8685 (6) "Rebate" means: 2
8786 (A) A negotiated price concession, including without 3
8887 limitation base price concessions, whether described as a rebate or not, 4
8988 reasonable estimates of any price protection rebates, and p erformance-based 5
9089 price concessions that may accrue, directly or indirectly, to the healthcare 6
9190 insurer during the coverage year from a manufacturer or other party in 7
9291 connection with the dispensing or administration of a prescription drug; and 8
9392 (B) Any reasonable estimate of a negotiated price 9
9493 concession, fee, and other administrative cost that is passed through, or is 10
9594 reasonably anticipated to be passed through, to the healthcare insurer and 11
9695 serves to reduce the healthcare insurer’s liabilities for a pres cription 12
9796 drug. 13
9897 14
9998 23-79-2403. Implementation of subchapter — Requirements. 15
10099 (a) An enrollee’s defined cost sharing for a prescription drug shall 16
101100 be calculated at the point -of-sale based on a price that is reduced by an 17
102101 amount equal to at least one hundred percent (100%) of all rebates received, 18
103102 or to be received, in connection with the dispensing or administration of the 19
104103 prescription drug. 20
105104 (b) This subchapter shall not preclude a healthcare insurer from 21
106105 decreasing an enrollee's defined cost sharing by an amount greater than that 22
107106 required under subsection (a) of this section. 23
108107 (c) In implementing the requirements of this section, the state shall 24
109108 only regulate a healthcare insurer to the extent permissible under applicable 25
110109 law. 26
111110 (d)(1) In complying with t his section, a healthcare insurer or its 27
112111 agents shall not publish or otherwise reveal information regarding the actual 28
113112 amount of rebates a healthcare insurer receives on a product or therapeutic 29
114113 class of products, manufacturer, or pharmacy -specific basis. 30
115114 (2) The information described in subdivision (d)(1) of this 31
116115 section is: 32
117116 (A) Protected as a trade secret; 33
118117 (B) Considered proprietary and confidential under § 23 -61-34
119118 107(a)(4) and § 23-61-207; 35
120119 (C) Not subject to disclosure under the Freedom of 36 HB1481
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123122
124123
125124 Information Act of 1967, § 25 -19-101 et seq.; and 1
126125 (D) Not to be disclosed: 2
127126 (i) Directly or indirectly; or 3
128127 (ii) In a manner that would: 4
129128 (a) Allow for the identification of an 5
130129 individual product, therapeutic class of products, or manufacturer; or 6
131130 (b) Have the potential to compromise the 7
132131 financial, competitive, or proprietary nature of the information. 8
133132 (3) A healthcare insurer shall impose the confidentiality 9
134133 protections of this section on any vendor or downstream third party that 10
135134 performs healthcare or administrative services on behalf of the healthcare 11
136135 insurer that may receive or have access to rebate information. 12
137136 13
138137 SECTION 2. Arkansas Code Title 23, Chapter 92, is amended to add an 14
139138 additional subchapter to read as fol lows: 15
140139 16
141140 Subchapter 7 — Arkansas Pharmacy Benefits Manager Share the Savings Act 17
142141 18
143142 23-92-701. Title. 19
144143 This subchapter shall be known and may be cited as the "Arkansas 20
145144 Pharmacy Benefits Manager Share the Savings Act". 21
146145 22
147146 23-92-702. Purpose. 23
148147 The purpose of this subchapter is to require pharmacy benefits managers 24
149148 to share the benefit of rebates with enrollees in this state. 25
150149 26
151150 23-92-703. Definitions. 27
152151 As used in this subchapter: 28
153152 (1) "Defined cost sharing" means a deductible payment or 29
154153 coinsurance amount imp osed on an enrollee for a covered prescription drug 30
155154 under the enrollee’s health benefit plan; 31
156155 (2) "Enrollee” means an individual entitled to coverage of 32
157156 healthcare services from a healthcare insurer; 33
158157 (3)(A) "Health benefit plan" means any individual, blanket, or 34
159158 group plan, policy, or contract for healthcare services issued or delivered 35
160159 by a healthcare insurer in this state. 36 HB1481
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164163
165164 (B) "Health benefit plan" does not include: 1
166165 (i) Accident-only plans; 2
167166 (ii) Specified disease plans; 3
168167 (iii) Disability income plans; 4
169168 (iv) Plans that provide only for indemnity for 5
170169 hospital confinement; 6
171170 (v) Long-term-care-only plans that do not include 7
172171 pharmacy benefits; 8
173172 (vi) Other limited-benefit health insurance policies 9
174173 or plans; 10
175174 (vii) Health benefit plans provided under Arkansas 11
176175 Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 12
177176 seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 13
178177 or 14
179178 (viii) Any state or local governmental employee 15
180179 plan; 16
181180 (4) "Healthcare insurer" means an insurance company that is 17
182181 subject to state law regulating insurance including without limitation a 18
183182 health maintenance organization or a hospital and medical service 19
184183 corporation; 20
185184 (5) "Pharmacy benefits management servi ce" means a service to: 21
186185 (A) Negotiate the price of prescription drugs, including 22
187186 negotiating and contracting for direct or indirect rebates, discounts, or 23
188187 other price concessions; 24
189188 (B) Manage any aspect of a prescription drug benefit, 25
190189 including without limitation: 26
191190 (i) Claims processing services; 27
192191 (ii) The performance of drug utilization review; 28
193192 (iii) The processing of drug prior authorization 29
194193 requests; 30
195194 (iv) The adjudication of appeals or grievances 31
196195 related to a prescription drug b enefit; 32
197196 (v) Controlling the cost of covered prescription 33
198197 drugs; or 34
199198 (vi) The provision of services related to the 35
200199 services described under this subdivision (5)(B); 36 HB1481
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204203
205204 (C) Disburse or distribute rebates, manage or participate 1
206205 in incentive program s or arrangements for pharmacist services, negotiate or 2
207206 enter into contractual arrangements with pharmacists or pharmacies, or both, 3
208207 develop formularies, or employ advertising or promotional services; 4
209208 (D) Perform any other administrative, managerial, 5
210209 clinical, pricing, financial, reimbursement, or billing service; and 6
211210 (E) Perform any other services as the Insurance 7
212211 Commissioner may include by rule; 8
213212 (6)(A) "Pharmacy benefits manager" means a person, business, or 9
214213 entity that, pursuant to a written agreement with a healthcare insurer or 10
215214 health benefit plan, either directly or indirectly provides one (1) or more 11
216215 pharmacy benefits management services on behalf of the healthcare insurer or 12
217216 health benefit plan, and any agent, contractor, intermediary, af filiate, 13
218217 subsidiary, or related entity of the person, business, or entity that 14
219218 facilitates, provides, directs, or oversees the provision of the pharmacy 15
220219 benefits management service or services. 16
221220 (B) "Pharmacy benefits manager" does not include a: 17
222221 (i) Healthcare facility licensed in Arkansas; 18
223222 (ii) Healthcare professional licensed in Arkansas; 19
224223 or 20
225224 (iii) Consultant who only provides advice as to the 21
226225 selection or performance of a pharmacy benefits manager; 22
227226 (7) "Price protection rebate" m eans a negotiated price 23
228227 concession that accrues directly or indirectly to a healthcare insurer, or 24
229228 other party on behalf of the healthcare insurer, if there is an increase in 25
230229 the wholesale acquisition cost of a prescription drug above a specified 26
231230 threshold; and 27
232231 (8) "Rebate" means: 28
233232 (A) A negotiated price concession including without 29
234233 limitation base price concessions, whether described as a rebate or not, 30
235234 reasonable estimates of any price protection rebates, and performance -based 31
236235 price concessions that may accrue, directly or indirectly, to the healthcare 32
237236 insurer during the coverage year from a manufacturer or other party in 33
238237 connection with the dispensing or administration of a prescription drug; and 34
239238 (B) Any reasonable estimate of a negotiated price 35
240239 concession, fee, and other administrative cost that is passed through, or is 36 HB1481
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244243
245244 reasonably anticipated to be passed through, to the healthcare insurer and 1
246245 serves to reduce the healthcare insurer’s liabilities for a prescription 2
247246 drug. 3
248247 4
249248 23-92-704. Implementation of subchapter — Requirements. 5
250249 (a) An enrollee’s defined cost sharing for a prescription drug shall 6
251250 be calculated at the point -of-sale based on a price that is reduced by an 7
252251 amount equal to at least one hundred percent (100%) of all rebates received, 8
253252 or to be received, in connection with the dispensing or administration of the 9
254253 prescription drug. 10
255254 (b) This subchapter shall not preclude a pharmacy benefits manager 11
256255 from decreasing an enrollee’s defined cost sharing by an amount greater than 12
257256 that required under subsection (a) of this section. 13
258257 (c)(1) A pharmacy benefits manager shall submit a certification to the 14
259258 Insurance Commissioner by January 1 of each calendar year certifying that the 15
260259 pharmacy benefits manager has complied with the requirements of this section 16
261260 during the previous calendar year. 17
262261 (2) The certification under subdivision (c)(1) of this section 18
263262 shall be signed by the chief executive officer or chief financial officer of 19
264263 the pharmacy benefits manager. 20
265264 (3) The form of the certific ation shall: 21
266265 (A) Be in a format approved or established by the 22
267266 commissioner; and 23
268267 (B) Include the pharmacy benefits manager’s best estimate 24
269268 of the aggregate amount of rebates used to reduce enrollee -defined cost 25
270269 sharing for prescription drugs in the previous calendar year based on 26
271270 information known to the pharmacy benefits manager as of the date of the 27
272271 certification. 28
273272 (d)(1) In complying with this section, a pharmacy benefits manager or 29
274273 its agents shall not publish or otherwise reveal information r egarding the 30
275274 actual amount of rebates a pharmacy benefits manager receives on a product or 31
276275 therapeutic class of products, manufacturer, or pharmacy -specific basis. 32
277276 (2) The information described in subdivision (d)(1) of this 33
278277 section is: 34
279278 (A) Protected as a trade secret; 35
280279 (B) Considered proprietary and confidential under § 23 -61-36 HB1481
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284283
285284 107(a)(4) and § 23-61-207; 1
286285 (C) Not subject to disclosure under the Freedom of 2
287286 Information Act of 1967, § 25 -19-101 et seq.; and 3
288287 (D) Not to be disclosed: 4
289288 (i) Directly or indirectly; or 5
290289 (ii) In a manner that would: 6
291290 (a) Allow for the identification of an 7
292291 individual product, therapeutic class of products, or manufacturer; or 8
293292 (b) Have the potential to compromise the 9
294293 financial, competitive, or proprieta ry nature of the information. 10
295294 (3) A pharmacy benefits manager shall impose the confidentiality 11
296295 protections of this section on any vendor or downstream third party that 12
297296 performs healthcare services or administrative services on behalf of the 13
298297 pharmacy benefits manager that may receive or have access to rebate 14
299298 information. 15
300299 16
301300 SECTION 3. DO NOT CODIFY. Severability. 17
302301 (a) In implementing this act, the state shall regulate a health 18
303302 benefit plan, healthcare insurer, or pharmacy benefits manager only to the 19
304303 extent permissible under applicable law. 20
305304 (b)(1) The provisions of this act are severable. 21
306305 (2) The invalidity of any provision of this act shall not affect 22
307306 other provisions of this act that can be given effect without the invalid 23
308307 provision. 24
309308 25
310309 26
311-APPROVED: 3/21/23 27
310+ 27
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