HLS 25RS-72 ORIGINAL 2025 Regular Session HOUSE BILL NO. 264 BY REPRESENTATIVE ECHOLS Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. INSURANCE/HEALTH: Provides for the utilization of pharmaceutical rebates by a pharmacy benefit manager 1 AN ACT 2To amend and reenact R.S. 22:1657.1(A), relative to pharmacy benefit managers; to provide 3 for the utilization of pharmaceutical rebates; to require a pharmacy benefit manager 4 to apply certain rebates in favor of health plan sponsors; and to provide for related 5 matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 22:1657.1(A) is hereby amended and reenacted to read as follows: 8 ยง1657.1. Pharmacy benefit manager rebate transparency report report; rebate 9 utilization 10 A.(1) Each pharmacy benefit manager licensed by the commissioner of 11 insurance shall submit an annual transparency report as a condition of maintaining 12 licensure. 13 (2) Each pharmacy benefit manager licensed by this state shall calculate a 14 covered individual's defined cost-sharing for each prescription drug at the point of 15 sale based on a price that is reduced by at least one hundred percent of all rebates 16 received, or to be received, in connection with dispensing or administering a 17 prescription drug. The cost savings of any rebate exceeding the defined cost-sharing 18 amount shall be passed on to the employer or sponsor of the health plan. 19 * * * Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 25RS-72 ORIGINAL HB NO. 264 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)] HB 264 Original 2025 Regular Session Echols Abstract: Requires a pharmacy benefit manager to apply any prescription rebate offered to a health plan benefit recipient in excess of the total cost-sharing portion to the benefit of sponsor or employer offering the health plan. Proposed law requires a pharmacy benefit manager to calculate a covered individual's share of the cost for a prescription drug, and then reduce it by an amount equal to 100% of any rebate offered. Proposed law further provides that if the rebate amount exceeds the cost to the covered individual, the remaining savings are passed on to the sponsor or employer providing the health plan to the covered individual. (Amends R.S. 22:1657.1(A)) Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.