Louisiana 2019 Regular Session

Louisiana House Bill HR254

Introduced
5/30/19  
Introduced
5/30/19  
Passed
6/5/19  

Caption

Requests the Department of Insurance to study and make recommendations regarding the regulation of pharmacy services administrative organizations

Impact

The resolution's impact on state laws hinges on the outcome of the study conducted by the Department of Insurance. If the department finds that regulation is warranted, this could lead to new legislative measures aimed at overseeing PSAOs. Such regulations could subsequently enhance the operational framework for independent community pharmacies, promoting better relationships with third-party payers and potentially improving their financial sustainability. Conversely, the absence of new regulations may continue to leave independent pharmacies vulnerable in their negotiations and dealings with larger health entities.

Summary

House Resolution 254 (HR254) requests the Department of Insurance to study the desirability and feasibility of state regulation of pharmacy services administrative organizations (PSAOs). PSAOs play a vital role in helping independent community pharmacies navigate complex relationships with third-party payers, including Medicare and large health plans. The resolution acknowledges the importance of independent pharmacies in Louisiana's healthcare system, emphasizing their need for support in interactions with various entities involved in the distribution and payment for dispensed medications.

Sentiment

The sentiment surrounding HR254 appears to be supportive among representatives who recognize the challenges faced by independent pharmacies. The unanimous vote in favor (91 yeas and 0 nays) suggests a strong bipartisan agreement on the necessity of assessing the current state of pharmacy operations and their relationships with PSAOs. However, the resolution does not outline specific measures or solutions, creating an environment in which stakeholders may have differing opinions on how regulation should be approached depending on their interests in the pharmacy sector.

Contention

While there seems to be general support for investigating regulation, potential points of contention could arise depending on the findings of the study. Issues may include the balance of regulatory oversight to ensure consumer protection while not imposing excessive burdens on PSAOs and pharmacies. Stakeholder input during the Department of Insurance's investigation will likely highlight diverse perspectives, particularly from small independent pharmacies versus larger pharmacy chains or health insurers. The subsequent recommendations could lead to debates regarding the appropriate framework for regulation and its implications for pharmacy operations in Louisiana.

Companion Bills

No companion bills found.

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