ENROLLED
2023 Regular Session
HOUSE RESOLUTION NO. 167
BY REPRESENTATIVE EDMONDS
A RESOLUTION
To request 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 and to evaluate the Office
of Group Benefits' management of the contract including its oversight of practices
that are prohibited by the pharmacy benefit manager contract such as spread pricing.
WHEREAS, in 2023, a new two billion dollar pharmacy contract began between the
Office of Group Benefits and CVS Caremark affecting more than two hundred thousand
state employees and retirees; and
WHEREAS, there have been multiple complaints and concerns expressed by state
employees and retirees regarding how the pharmacy benefit management contract has
affected their ability to get medications and by pharmacies that are reimbursed for
medications at rates that are less than the cost of the medications being dispensed to patients;
and
WHEREAS, due to the effect on the state's budget, the effect on state employees and
retirees, and Louisiana pharmacies, it is important for the House of Representatives to have
an independent review and evaluation of the pharmacy benefit manager contracts for
provision of pharmacy benefits provided through the Office of Group Benefits in order to
develop the policies needed to improve the situation and to evaluate the related budget
requests for inclusion in the General Appropriation Bill.
THEREFORE, BE IT RESOLVED that the House of Representatives of the
Legislature of Louisiana does hereby request the legislative auditor to conduct a review and
evaluation of the pharmacy benefit manager contracts for provision of pharmacy benefits
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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 of Representatives, along with any additional
information the legislative auditor deems relevant and any recommendations for
improvement, no later than February 15, 2024.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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