Provides for third party contracts with pharmacies. (8/1/14)
The enactment of SB 401 alters existing state law relating to pharmacy contracts by defining specific requirements regarding communication between pharmacies and negotiating organizations. Organizations that fail to comply with these requirements may face penalties, as violations will now be classified as unfair or deceptive practices under the law. This change should create more accountability for organizations negotiating on behalf of pharmacies, thereby protecting the interests of independent pharmacies and their operations in Louisiana.
Senate Bill 401 seeks to regulate the contracts between pharmacies and third-party payors by establishing clear requirements for organizations negotiating or representing pharmacies. Specifically, the bill mandates that any organization working with pharmacies must provide them with copies of all new or amended contracts and provider documentation relevant to their network participation. This measure is aimed at ensuring transparency and fairness in dealings between pharmacies and the organizations that negotiate their contracts.
The sentiment surrounding SB 401 appears to be positive, particularly among independent pharmacy owners who may feel empowered by the additional protections the bill provides. They view it as a necessary step to level the playing field against larger pharmacy entities and third-party negotiators. Meanwhile, there may also be concerns from opposing parties about increased regulations potentially affecting how quickly organizations can negotiate and finalize contracts.
While the bill passed unanimously in the Senate, the discussion around its necessity and potential implications may have included differing views on how much regulation is appropriate in the pharmacy industry. Some stakeholders may argue that increased regulation could lead to bureaucracy that might slow down operations, while others contend that the protections afforded by the bill are crucial for maintaining fair practices in the industry.