HLS 19RS-2708 ORIGINAL
2019 Regular Session
HOUSE RESOLUTION NO. 254
BY REPRESENTATIVE JORDAN
INSURANCE/HEALTH: Requests the Department of Insurance to study and make
recommendations regarding the regulation of pharmacy services administrative
organizations
1 A RESOLUTION
2To authorize and request the Department of Insurance to study the desirability and feasibility
3 of the state regulation of pharmacy services administrative organizations, and to
4 report the findings of the study to the legislative committees on insurance.
5 WHEREAS, independent community pharmacies are locally-owned, small business
6drugstores who offer a variety of niche services and personalized care and who play a critical
7role in Louisiana's healthcare delivery system; and
8 WHEREAS, independent community pharmacies are required to interact with a
9network of entities that offer a variety of services to obtain, distribute, and collect payment
10for the drugs they dispense, including but not limited to drug wholesalers that purchase and
11distribute drugs to pharmacies and third-party payers that pay for the dispensed drugs on
12behalf of enrollees; and
13 WHEREAS, with limited time and resources, independent community pharmacies
14may need assistance in interacting with these entities, particularly with third-party payers
15that include large private and public health plans such as those offered by large corporations
16and the federal government through Medicare and the Federal Employees Health Benefits
17Program; and
18 WHEREAS, pharmacy services administrative organizations provide administrative
19services to independent community pharmacies to assist the pharmacies in interacting with
20third-party payers; and
Page 1 of 3 HLS 19RS-2708 ORIGINAL
HR NO. 254
1 WHEREAS, pharmacy services administrative organizations are not currently
2regulated by the Department of Insurance or any other state agency; and
3 WHEREAS, the Department of Insurance works diligently to balance the needs of
4insurance consumers with the insurance industry's need to run a competitive business; and
5 WHEREAS, as a regulator, the department enforces the laws that provide a fair and
6stable marketplace with transparent rules so one insurer does not have an unfair competitive
7advantage over other insurers.
8 THEREFORE, BE IT RESOLVED that the House of Representatives of the
9Legislature of Louisiana does hereby urge and request the Department of Insurance to study
10the desirability and feasibility of the state regulation of pharmacy services administrative
11organizations.
12 BE IT FURTHER RESOLVED that, in carrying out the purposes of this Resolution,
13the Department of Insurance shall engage and solicit input, recommendations, and advice
14from interested parties and stakeholders including but not limited to representatives from all
15of the following:
16 (1)Independent community pharmacies.
17 (2)Wholesale drug distributors.
18 (3)Pharmacy services administrative organizations.
19 (4)Pharmacy benefit managers and other third-party administrators.
20 (5)Health insurance and health benefit plan issuers.
21 BE IT FURTHER RESOLVED that, in conducting the study required by this
22Resolution, the Department of Insurance shall survey the laws and best practices in other
23states.
24 BE IT FURTHER RESOLVED that the Department of Insurance shall submit a
25written report of its findings and recommendations, including proposed legislation if
26necessary, to the House Committee on Insurance and Senate Committee on Insurance no
27later than February 1, 2020. The department may render objective, fiscally feasible
28recommendations to the legislature for the implementation of policies that could be adopted
29by the state.
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HR NO. 254
1 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
2commissioner of insurance.
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)]
HR 254 Original 2019 Regular Session Jordan
Requests the Dept. of Insurance to study the desirability and feasibility of the state regulation
of pharmacy services administrative organizations. Requests a written report no later than
Feb. 1, 2020.
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