LCO No. 2507 1 of 2 General Assembly Proposed Bill No. 821 January Session, 2025 LCO No. 2507 Referred to Committee on INSURANCE AND REAL ESTATE Introduced by: SEN. MARTIN, 31st Dist. AN ACT CONCERNING PHARMACY BENEFITS MANAGER REFORM AND PRICE GOUGING IN THE HEALTH CARE SECTOR. Be it enacted by the Senate and House of Representatives in General Assembly convened: That title 38a of the general statutes be amended to: (1) Prohibit any 1 pharmacy benefits manager from imposing post-transaction fees or 2 implementing reimbursement clawbacks on pharmacies; (2) require that 3 any rebate, discount or financial incentive provided by any drug 4 manufacturer to any pharmacy benefits manager be passed directly to 5 the covered person at the point of sale; (3) decouple any pharmacy 6 benefits manager compensation from the cost of medications; (4) 7 prohibit any pharmacy benefits manager from charging fees for 8 formulary placement or tier-level access; (5) require that any group 9 purchasing organization that contracts with any pharmacy benefits 10 manager in this state be incorporated in the United States and that such 11 group purchasing organization disclose all fees and administrative costs 12 associated with such contracts; (6) prohibit any pharmacy benefits 13 manager from prioritizing more expensive medications over less 14 expensive and clinically appropriate medications; (7) prohibit any 15 Proposed Bill No. 821 LCO No. 2507 2 of 2 pharmacy benefits manager from preventing pharmacists from 16 informing patients about lower-priced prescription drugs; (8) require 17 that cash payments for prescription drugs be applied toward any 18 coinsurance, copayment, deductible or other out-of-pocket expense; (9) 19 require that the Attorney General oversee pharmacy benefits manager 20 operations in this state to ensure compliance with rebate transparency 21 and clawback prohibitions and to establish a duty of care owed by 22 pharmacy benefits managers; and (10) allow the Attorney General to 23 investigate, intervene in or bring a civil or administrative action in the 24 name of the state, seeking injunctive or declaratory relief, damages and 25 any other relief that may be available under law, whenever any person 26 in the insurance, pharmaceutical, pharmacy benefits management or 27 utility sector is or has engaged in a practice or pattern of conduct that 28 constitutes price gouging. 29 Statement of Purpose: To reform pharmacy benefits manager practices in this state, establish a duty of care for pharmacy benefits managers and regulate health care price gouging in this state.