The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Christine Arbo Peck. DIGEST SB 130 Original 2018 Regular Session Mills Proposed law requires Medicaid pharmacy benefit manager contracts to be limited to a set per transaction rate for every pharmacy claim paid. Proposed law prohibits pharmacy benefit managers from retaining federal drug rebates or "spread pricing" amounts in excess of what they paid the pharmacist. Proposed law requires the Louisiana Department of Health (LDH) to amend current contracts to comply with these provisions. Proposed law requires LDH to terminate the contract of any managed care organization or pharmacy benefit manager who does not wish to adhere to these contract provisions and issue a request for proposal to other pharmacy benefit managers. Proposed law requires LDH, after August 1, 2018, to issue separate requests for proposal for a single pharmacy benefit manager upon subsequently issuing requests for proposal for Mediciad managed care organizations. Proposed law allows LDH to issue a requests for proposal for a single pharmacy benefit manager sooner so long as it complies with the Louisiana Procurement Code and the contracting requirements of proposed law. Effective August 1, 2018. (Adds R.S. 39:1648)