HLS 23RS-2950 ENGROSSED 2023 Regular Session HOUSE RESOLUTION NO. 167 BY REPRESENTATIVE EDMONDS LEGISLATIVE AUDITOR: 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 1 A RESOLUTION 2To request the legislative auditor to conduct a review and evaluation of the pharmacy benefit 3 manager contracts for provision of pharmacy benefits provided through the Office 4 of Group Benefits, to compare the overall annual cost to provide pharmacy benefits, 5 the price of common medications, and administrative fees and to evaluate the Office 6 of Group Benefits' management of the contract including its oversight of practices 7 that are prohibited by the pharmacy benefit manager contract such as spread pricing. 8 WHEREAS, in 2023, a new two billion dollar pharmacy contract began between the 9Office of Group Benefits and CVS Caremark affecting more than two hundred thousand 10state employees and retirees; and 11 WHEREAS, there have been multiple complaints and concerns expressed by state 12employees and retirees regarding how the pharmacy benefit management contract has 13affected their ability to get medications and by pharmacies that are reimbursed for 14medications at rates that are less than the cost of the medications being dispensed to patients; 15and 16 WHEREAS, due to the effect on the state's budget, the effect on state employees and 17retirees, and Louisiana pharmacies, it is important for the House of Representatives to have 18an independent review and evaluation of the pharmacy benefit manager contracts for 19provision of pharmacy benefits provided through the Office of Group Benefits in order to 20develop the policies needed to improve the situation and to evaluate the related budget 21requests for inclusion in the General Appropriation Bill. Page 1 of 2 HLS 23RS-2950 ENGROSSED HR NO. 167 1 THEREFORE, BE IT RESOLVED that the House of Representatives of the 2Legislature of Louisiana does hereby request the legislative auditor to conduct a review and 3evaluation of the pharmacy benefit manager contracts for provision of pharmacy benefits 4provided through the Office of Group Benefits, to compare the overall annual cost to provide 5pharmacy benefits, the price of common medications, and administrative fees, to evaluate 6the Office of Group Benefits' management of the contract, including its oversight of 7practices that are prohibited by the contract such as spread pricing, and to submit a report 8of the review and evaluation to the House of Representatives, along with any additional 9information the legislative auditor deems relevant and any recommendations for 10improvement, no later than February 15, 2024. 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 167 Engrossed 2023 Regular Session Edmonds Requests the legislative auditor to conduct a review and evaluation of the pharmacy benefit manager contracts for provision of pharmacy benefits provided through the Office of Group Benefits, to compare the overall annual cost to provide pharmacy benefits, the price of common medications, and administrative fees, to evaluate the Office of Group Benefits' management of the contract, including its oversight of practices that are prohibited by the contract such as spread pricing, and to submit a report of the review and evaluation to the House, along with any additional information the legislative auditor deems relevant and any recommendations for improvement, no later than Feb. 15, 2024. Page 2 of 2