Texas Senate Bill SB704

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/15/09
• Voted on by Senate: 4/22/09
• Out of House Committee: 5/7/09
• Voted on by House: 5/20/09
• Governor Action: 6/19/09
• Enrolled: 5/30/09
• Passed: 6/19/09

Caption

Relating to the regulation of pharmacy benefit managers and mail order pharmacies.

Impact

If enacted, SB704 would impact how pharmacy benefit managers interact with state agencies, particularly regarding the contracts and pricing disclosures associated with their services. The bill emphasizes that contracts entered into after September 1, 2009, cannot prevent agencies from disclosing pricing information, which could lead to significant changes in how these contracts are structured. This could open avenues for more competitive pricing and improved service provisions, potentially influencing the overall costs of healthcare services provided to state entities.

Summary

Senate Bill 704 aims to regulate the disclosure of prices charged by pharmacy benefit managers (PBMs) to state agencies in Texas. The bill proposes new requirements for state agencies to disclose pricing information upon request from other state entities. This establishes a framework intended to promote transparency and ensure that state contracts for pharmacy benefit manager services are managed with greater oversight. The requirement for state agencies to disclose such information seeks to empower government oversight over pharmacy benefit managers, enhancing accountability in the management of prescription drug programs.

Contention

While the bill is primarily oriented towards improving transparency, it may raise concerns among pharmacy benefit managers who could view these disclosure requirements as regulatory burdens that complicate their operational models. There could be debates over the extent of confidentiality permitted in contracts and potential resistance from PBMs regarding mandated disclosures. Furthermore, aligning the interests of state agencies with those of pharmacy benefit managers can lead to discussions about market fairness and competition, which may prove to be contentious as these stakeholders navigate the implications of SB704.