Maryland 2023 Regular Session

Maryland Senate Bill SB565

Introduced
2/6/23  

Caption

Health Insurance - Pharmacy Benefits Managers - Audits of Pharmacies and Pharmacists

Impact

The bill introduces various requirements and prohibitions that govern how PBMs can conduct audits. For instance, PBMs must provide a two-week notice before onsite audits, and they are limited to auditing a specific number of prescriptions unless they compensate the pharmacy for additional audits. The intent of these provisions is to reduce the administrative burden on pharmacists and ensure they are treated equitably in the audit process. Also, by restricting the use of extrapolation for calculating overpayments or underpayments, SB565 aims to minimize potential financial discrepancies that could arise from audits.

Summary

Senate Bill 565, titled 'Health Insurance - Pharmacy Benefits Managers - Audits of Pharmacies and Pharmacists,' aims to reform the auditing practices of pharmacy benefits managers (PBMs) regarding pharmacies and pharmacists in Maryland. This legislation extends the applicability of audit provisions to all PBMs, ensuring fair practices during audits related to claims submitted by pharmacies. One of the significant outcomes of the bill is the requirement for PBMs to conduct audits through registered auditing entities, which ensures compliance with state regulations and protects the interests of pharmacies against arbitrary auditing practices.

Conclusion

Overall, SB565 represents a pivotal step toward greater accountability in the health insurance sector, particularly regarding the relationship between pharmacies and pharmacy benefits managers. By instituting stricter audit protocols and ensuring fairness and transparency, the bill is poised to bolster the operational stability of pharmacies and, consequently, improve access to medication for patients.

Contention

Notably, the bill addresses the contentious issues surrounding the auditing practices of PBMs that have often been criticized for being overly aggressive and lacking transparency. Concerns had emerged regarding the financial impacts these audits could have on pharmacies, especially in the context of recouping payments without proper validation. By requiring PBMs to establish internal appeal processes for pharmacies to contest audit findings, SB565 seeks to provide an additional layer of protection and due process for pharmacies affected by audits.

Companion Bills

MD HB374

Crossfiled Health Insurance – Pharmacy Benefits Managers – Audits of Pharmacies and Pharmacists

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