HLS 23RS-2971 ORIGINAL
2023 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 106
BY REPRESENTATIVE EDMONDS
INSURANCE/GROUP-STATE: Requests certain actions by the Office of Group Benefits
relative to pharmacy benefit managers and contracts relative thereto
1 A CONCURRENT RESOL UTION
2To direct the Office of Group Benefits to request certain information from current and
3 former contractors of pharmacy benefit manager services, to include certain
4 provisions in future contracts for pharmacy benefit manager services, and to report
5 to the Joint Legislative Committee on the Budget no later than November 1, 2023.
6 WHEREAS, the Legislature of Louisiana is committed to using transparency and
7accountability to reduce the cost of healthcare for Louisianians, and that expectation extends
8to entities that conduct business with the state of Louisiana; and
9 WHEREAS, the Office of Group Benefits is the agency within the executive branch
10of state government tasked with the general administration of all aspects of certain programs
11of benefits, including health and pharmacy benefits; and
12 WHEREAS, the Office of Group Benefits has the power and duty to procure and
13negotiate pharmacy benefit manager contracts for the administration or management of
14prescription drug benefits on the behalf of state employees, dependants, and retirees; and
15 WHEREAS, pharmacy benefit managers are entities that create pharmacy networks,
16process claims, review drug utilization, manage mail-order or specialty pharmacies, create
17formularies, and negotiate rebates with manufacturers; and
18 WHEREAS, the Legislature of Louisiana is invested in increased transparency and
19accountability in pharmacy benefit manager contracts in order to reduce costs charged for
20prescription drugs used by state employees, dependants, and retirees.
Page 1 of 3 HLS 23RS-2971 ORIGINAL
HCR NO. 106
1 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
2direct the Office of Group Benefits to request the following information from current and
3former contractors of pharmacy benefit manager services: (1) a list of all terms used by the
4contractor in the ordinary course of business that describe or categorize any payments to and
5from any related entity, including but not limited to terms labeling or describing elements
6of the contractor's reimbursements, effective rate contracts, dispensing fees, claim fees,
7pharmacy network participation fees, all forms of performance fees and components and
8methods used in the calculation of such fees, fees for research, tracking and information
9services, and all other related terms; (2) detailed information for each step, variable, and
10calculation used to determine the amount of money or other consideration paid to the
11contractor, received by the contractor, retained by the contractor, or otherwise obtained by
12the contractor from relevant entities; (3) the contractor's policies and criteria for defining or
13designating drugs as specialty drugs and all documents relating to such policies and criteria,
14including but not limited to the frequency and circumstances related to any changes to the
15policies or criteria; and (4) the contractor's policies for requiring or incentivizing patients to
16utilize specialty or mail-order pharmacy services owned or affiliated with the contractor,
17including but not limited to co-pay differentials, availability of ninety day refills, shipping
18charge differentials, pricing differentials, express shipping availability, simplified ordering,
19patient communications or reminder policies, or other service or any financial or non-
20financial incentives.
21 BE IT FURTHER RESOLVED, that the Legislature of Louisiana does hereby direct
22the Office of Group Benefits to include provisions that prohibit pharmacy benefit managers
23from the use of spread pricing and financial clawbacks and provisions that require data
24reporting measures including but not limited to data regarding rebates and payments from
25drug manufacturers, insurers, and pharmacies in all future contracts for pharmacy benefit
26manager services.
27 BE IT FURTHER RESOLVED, the information requested by this concurrent
28resolution may only be collected, shared, or disclosed in accordance with federal and state
29laws, including any relevant privacy laws related to proprietary or confidential information.
Page 2 of 3 HLS 23RS-2971 ORIGINAL
HCR NO. 106
1 BE IT FURTHER RESOLVED, the Office of Group Benefits shall report to the Joint
2Legislative Committee on the Budget no later than November 1, 2023.
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)]
HCR 106 Original 2023 Regular Session Edmonds
Directs the Office of Group Benefits (OGB) to request information regarding
reimbursements, rates, dispensing fees, pharmacy network participation fees, polices and
criteria for designating drugs as specialty drugs, and information regarding policies
concerning the use of mail-order pharmacy services from contractors providing pharmacy
benefit services. Further directs OGB to include provisions prohibiting pharmacy benefit
managers from the use of spread pricing and financial clawbacks and provisions requiring
data reporting measures in future contracts for pharmacy benefit manager services. Further
directs OGB to report to the Joint Legislative Committee on the Budget no later than
November 1, 2023.
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