Kentucky 2022 Regular Session

Kentucky House Bill HB457

Introduced
2/7/22  
Refer
2/7/22  
Refer
3/9/22  
Report Pass
3/10/22  
Engrossed
3/21/22  
Refer
3/21/22  

Caption

AN ACT relating to pharmacy or pharmacist services.

Impact

The enactment of HB 457 would significantly alter how pharmacy benefit managers operate in the state, focusing on preventing practices that could reduce the reimbursement pharmacies receive. It puts forth requirements for PBMs to notify pharmacies about payment adjustments and gives pharmacies more rights regarding negotiating fair reimbursement rates. This shift aims to ensure that local pharmacies can compete more effectively with mail-order and affiliate pharmacies, ultimately benefiting consumers by preserving their access to services at local establishments.

Summary

House Bill 457 focuses on regulating pharmacy benefit managers (PBMs) and establishing clearer guidelines for how they interact with pharmacies and patients. The legislation aims to enhance transparency in the pharmacy reimbursement process, requiring PBMs to provide detailed notices regarding reimbursement rates and prohibiting certain practices that may unfairly disadvantage retail pharmacies. This bill stipulates that PBMs cannot impose restrictions on cost-sharing that would be more burdensome than if insured individuals used a mail-order pharmacy, addressing concerns that patients may face excess costs when using local pharmacies instead of mail-orders.

Sentiment

Sentiment around HB 457 appears to be largely supportive among pharmacy advocates and local businesses who argue that the bill serves to protect their interests against the growing influence of PBMs. However, some health plans and PBMs may oppose certain provisions, viewing them as burdensome regulatory requirements that could increase operational costs. Overall, those in favor view this legislation as a step towards fostering a fairer healthcare landscape, while those opposed express concerns over potential implications for overall healthcare costs.

Contention

Key points of contention regarding HB 457 center around the balance of power between pharmacies and PBMs, particularly concerning reimbursement methodologies and access to medication. Supporters assert that the bill is necessary to combat potential overreach by PBMs that could limit patient choices and negatively impact medication accessibility. Critics may argue that while aiming to support local pharmacies, the bill could inadvertently increase costs for insurers, leading to higher premiums for consumers. This highlights ongoing debates in healthcare policy regarding regulation and cost management.

Companion Bills

No companion bills found.

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