Louisiana House Bill HSR6

Louisiana 2012 Regular Session

Caption

Requests the House Ways and Means Committee to study the impact of pharmacy benefit management contracts on the collection and payment of local sales and use tax on prescription drugs and pharmacist services

Impact

The examination requested by HSR6 is critical for understanding the potential implications of pharmacy benefit management on local revenues. By investigating the financial responsibilities laid out in existing health insurance contracts and the statutory requirements regarding tax collection, the study aims to inform future policies that may necessitate changes in how local sales and use taxes associated with prescription drugs are handled. This could lead to legislative adjustments that better align the responsibilities of health insurance issuers with local financial practices.

Summary

House Study Request No. 6 (HSR6) aims to initiate a comprehensive study on the impact that pharmacy benefit management contracts have on the collection and payment of local sales and use tax pertinent to prescription drugs and pharmacist services. This bill recognizes the complexities surrounding the relationship between pharmacists, health insurance issuers, and pharmacy benefit managers, particularly regarding the responsibilities of these parties in managing local sales taxes. It underscores that while local political subdivisions rely on these taxes for revenue, pharmacists often find themselves caught in disputes over reimbursement for the taxes they remit.

Sentiment

Discussion around HSR6 appears to reflect a growing concern regarding the financial viability of local governments and the equitable treatment of pharmacists in the context of sales tax collection. There is a general sentiment indicating that pharmacists should not bear the financial burden of collecting taxes that are, in principle, the responsibility of their business relationships with health issuers and benefit managers. The call for a detailed study is seen as a necessary step towards rectifying these disparities and ensuring the sustained revenue for local services.

Contention

While HSR6 is expected to foster productive discussions about tax collection, some contention may arise surrounding the definitions of responsibilities among pharmacies, insurers, and benefit managers. Stakeholders may express differing views on whether the current frameworks are adequate or if deeper reforms are necessary. The outcomes of the proposed study could shape legislative actions that may either affirm or challenge existing norms regarding local sales tax responsibilities in the pharmacy sector.