1 of 1 SENATE DOCKET, NO. 761 FILED ON: 1/14/2025 SENATE . . . . . . . . . . . . . . No. 687 The Commonwealth of Massachusetts _________________ PRESENTED BY: Cynthia Stone Creem _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act ensuring access to fair and reasonable pharmacy networks. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Cynthia Stone CreemNorfolk and Middlesex 1 of 2 SENATE DOCKET, NO. 761 FILED ON: 1/14/2025 SENATE . . . . . . . . . . . . . . No. 687 By Ms. Creem, a petition (accompanied by bill, Senate, No. 687) of Cynthia Stone Creem for legislation to ensure access to fair and reasonable pharmacy networks. Financial Services. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act ensuring access to fair and reasonable pharmacy networks. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Section 1 of chapter 176Y of the General Laws, as inserted by chapter X of 2the Acts of 2024, is hereby amended by inserting after the definition of “Mail-order pharmacy” 3the following definition:- 4 “Network”, as defined in section 1 of chapter 176O. 5 SECTION 2. Said section 1 of said chapter 176Y is hereby further amended by inserting 6after the definition of “Pharmacy benefit manager” the following definition:- 7 "Steering”, a practice employed by a pharmacy benefit manager or carrier that channels a 8prescription to a pharmacy in which a pharmacy benefit manager or carrier has an ownership 9interest or with which it is under common ownership, including, but not limited to, retail, mail- 10order, or specialty pharmacies. 11 SECTION 3. Said chapter 176Y is hereby further amended by inserting at the end thereof 12the following 2 sections:- 2 of 2 13 Section 5. (a) A pharmacy benefit manager shall provide a reasonably adequate and 14accessible pharmacy benefit manager network for the provision of prescription drugs, which 15provides for convenient patient access to pharmacies within a reasonable distance from a 16patient’s residence. 17 (b) A pharmacy benefit manager may not deny a pharmacy the opportunity to participate 18in a pharmacy benefit manager network at preferred participation status if the pharmacy is 19willing to accept the terms and conditions that the pharmacy benefit manager has established for 20other pharmacies as a condition of preferred network participation status. 21 (c) A mail-order pharmacy shall not be considered when determining pharmacy benefit 22manager network adequacy under this section. 23 Section 6. (a) A pharmacy benefits manager that engages in the practice of steering shall 24be subject to a surcharge payable to the division of 10 percent on the aggregate dollar amount it 25reimbursed pharmacies in the previous calendar year for prescription drugs in the 26commonwealth. 27 (b) Any person operating a health plan whose contracted pharmacy benefits manager 28engages in the practice of steering shall be subject to a surcharge payable to the division of 10 29percent on the aggregate dollar amount its pharmacy benefit manager reimbursed pharmacies on 30its behalf in the previous calendar year for prescription drugs in the commonwealth.