Louisiana 2023 Regular Session

Louisiana House Bill HR167

Introduced
5/17/23  
Introduced
5/17/23  
Refer
5/18/23  
Refer
5/18/23  
Report Pass
5/30/23  
Report Pass
5/30/23  
Passed
6/2/23  

Caption

Requests the legislative auditor to evaluate the oversight and management of the Office of Group Benefits' contracts with pharmacy benefit managers to provide pharmacy benefits for state employees and retirees (EN NO IMPACT See Note)

Impact

The resolution emphasizes the need for an independent assessment aimed at fostering improvements in the management of pharmacy benefits for state employees and retirees. This call to action intends to scrutinize the influence of pharmacy benefit managers on both healthcare costs and the accessibility of medications. By comparing annual costs, common medication prices, and administrative fees, the evaluation will be crucial in developing future policies and budgetary requests necessary for the Office of Group Benefits. The findings may serve to refine contract specifications and enhance overall healthcare delivery for state employees.

Summary

House Resolution 167 requests the legislative auditor to conduct a thorough review and evaluation of the pharmacy benefit manager contracts utilized by the Office of Group Benefits. These contracts significantly impact over two hundred thousand state employees and retirees in Louisiana, particularly concerning the management of pharmacy benefits. With the commencement of a new two billion dollar pharmacy contract with CVS Caremark, concerns about the efficacy and transparency of these agreements have amplified amongst stakeholders. The resolution highlights the importance of understanding both the overall costs associated with pharmacy benefits and the specific practices that may not adhere to contract stipulations, such as spread pricing.

Sentiment

The sentiment surrounding HR 167 has been largely supportive among legislators, reflecting a collective acknowledgment of the issues faced by state employees and retirees regarding pharmacy access and costs. The unanimous voting outcome (96 yeas, 0 nays) during the final consideration demonstrates a bipartisan agreement on the need for better oversight of pharmacy benefit management practices. However, it also signifies an underlying concern over the existing management structures and the potential ramifications on both employee health and state budgets.

Contention

While there appears to be vast consensus on the necessity for this audit, tensions may arise regarding the outcomes of the evaluation. Notably, stakeholders in the pharmacy sector, including small pharmacies, may voice concerns about reimbursement practices that they argue compromise their ability to serve patients effectively. Additionally, the audit's findings could spur debates around accountability and transparency within the Office of Group Benefits and prompt recommendations that could disrupt established partnerships with pharmacy benefit managers.

Companion Bills

No companion bills found.

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