RDCSB283 1814 3621
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
SB 283 Reengrossed 2018 Regular Session Mills
Present law requires pharmacy benefit managers to be licensed by the Dept. of Insurance
(DOI).
Proposed law retains present law and further requires DOI to have a dedicated location on
the department's website to publish pharmacy benefit manager information, including the
formulary and timely notification of formulary changes by each licensed pharmacy benefit
manager.
Proposed law requires pharmacy benefit managers beginning June 1, 2020, to issue an
annual transparency report that discloses aggregate data on rebates received from drug
manufacturers, administrative fees, and aggregate rebates received that did not pass through
to the health benefit plan or insurer. Further requires DOI to publish the transparency report
within 60 days of receipt from the pharmacy benefit manager.
Proposed law requires a pharmaceutical drug manufacturer to notify the commissioner of
insurance by electronic mail of any drug price increase of 50% or greater not more than 30
days after the price increase.
Proposed law provides for an exception to the Public Records Law.
Effective August 1, 2018.
(Amends R.S. 22:1657 and R.S. 44:4.1(B)(11); Adds R.S. 22:1657.1)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Removes provision that states that proposed law applies to pharmacy benefit
managers participating in the Medicaid program.
2. Adds provision for notification when there is a drug price increase of 50%
or greater.
3. Makes technical changes.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
reengrossed bill:
1. Change the time period for reporting price increases from not less than 30 days
prior to the increase to not more than 30 days after the increase.
2. Make technical changes.
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The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the reengrossed bill:
1. Change the due date of the first transparency report from Feb. 1, 2019, to June 1,
2020.
2. Change the deadline for DOI to publish a transparency report from 10 days after
receipt to 60 days after receipt.
3. Remove provisions of proposed law that authorize the commissioner of insurance
to enforce proposed law and provide for enforcement against the pharmacy
benefit manager's license for failure to comply with proposed law.
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