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