Provides for unfair or deceptive acts or practices in the insurance business against certain pharmacies and pharmacists who are licensed and physically located in the state. (8/1/20)
Impact
The bill aims to reinforce the position of local pharmacies against potential discriminatory practices within the insurance industry. By retaining prohibitions against unfair denial of contracts to licensed pharmacies, the legislation is designed to foster a more equitable environment for competition among insurance providers. Furthermore, it seeks to enhance stability within local pharmaceutical services by giving pharmacists assurance that they can compete fairly for contracts based on service quality rather than arbitrary network exclusions.
Summary
Senate Bill No. 61, proposed by Senator Fred Mills, seeks to amend existing regulations regarding unfair or deceptive acts in the insurance business as they pertain to pharmacies and pharmacists licensed in Louisiana. The bill specifically addresses the rights of these local entities to participate as contract providers of pharmaceutical services and products under health benefits policies. The core aim is to ensure that pharmacies located within the state cannot be unjustly denied participation in insurance networks, provided they meet all outlined service requirements.
Sentiment
The general sentiment surrounding SB 61 is supportive among local pharmacy advocates, who argue that the bill is a necessary measure to protect their interests against unfair practices by larger insurance companies. Many stakeholders view this legislation as a means to reinforce local business rights and promote fair competition. However, there may be concerns regarding the effect of the bill on insurance providers, with potential pushback from those who perceive it as regulation-heavy, potentially complicating contracting processes.
Contention
While the bill is largely viewed positively by local pharmacists, there may be contention related to its implications on the insurance sector. Critics may argue that such regulations could lead to increased operational burdens for insurers, thereby impacting overall rates and services offered to consumers. The debate centers around the balance between protecting local business interests and maintaining a streamlined insurance ecosystem that is responsive to market demands.
Unfair insurance practices; modifying rebate actions to be considered unfair methods of competition or unfair and deceptive acts in the business of insurance. Effective date.
Unfair insurance practices; modifying rebate actions to be considered unfair methods of competition or unfair and deceptive acts in the business of insurance. Effective date.