LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6329 NOTE PREPARED: Nov 25, 2024
BILL NUMBER: SB 136 BILL AMENDED:
SUBJECT: Disclosures Related to Prescription Drugs.
FIRST AUTHOR: Sen. Bohacek BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State
XDEDICATED
FEDERAL
Summary of Legislation: Beginning January 1, 2026, the bill requires a state employee health plan, a policy
of accident and sickness insurance, and a health maintenance organization contract to provide to a covered
individual the national average drug acquisition cost of a generic drug on the written materials provided at
the point of sale.
It provides that if an agreement between a health plan and a pharmacy benefit manager that is entered into
or renewed after December 31, 2025, provides that less than 85% of the estimated rebates will be deducted
from the cost of prescription drugs before a covered individual's cost sharing requirement is determined, the
pharmacy benefit manager must provide the policyholder with a notice on an annual basis that includes:
(1) an explanation of what a rebate is;
(2) an explanation of how rebates accrue to the health plan from the manufacturer; and
(3) the aggregate amount of rebates that accrued to the health plan for prescription drugs
dispensed under the policyholder's health plan for the previous year.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill’s requirements will increase workload for the Department
of Insurance (DOI) to evaluate and resolve allegations of failure to provide appropriate notices, but should
be able to be implemented using existing staffing and resources. [The DOI is funded through a dedicated
agency fund.]
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Department of Insurance.
SB 136 1 Local Agencies Affected:
Information Sources:
Fiscal Analyst: Karen Rossen, 317-234-2106.
SB 136 2