Maryland 2024 Regular Session

Maryland House Bill HB876

Introduced
2/2/24  
Refer
2/2/24  
Report Pass
3/16/24  
Engrossed
3/18/24  

Caption

Health Insurance - Pharmacy Benefits Managers - Specialty Drugs

Impact

This bill aims to reshape the landscape of health insurance provisions in Maryland by creating stricter guidelines on how pharmacy benefits managers operate in relation to specialty drugs. By amending existing laws, it protects patients from being forced into less favorable pharmacy situations, especially in the context of chronic and life-threatening conditions. Moreover, it promotes equitable reimbursement rates for pharmacies, thereby advocating for their financial sustainability while enabling better access to essential medications for patients. The enactment of HB 876 could lead to significant changes in how pharmacy benefits are managed, potentially benefiting both providers and patients.

Summary

House Bill 876 concerns the regulations surrounding pharmacy benefits managers (PBMs) and their handling of specialty drugs dispensed by physicians. The bill prohibits PBMs from requiring beneficiaries to use a specific pharmacy for certain specialty drugs if those drugs are administered directly by a physician for various serious medical conditions. Additionally, it seeks to amend the reimbursement practices of PBMs, ensuring that they cannot reimburse pharmacies less than they pay themselves for providing these drugs. This legislation reflects a growing concern about the balance of power between PBMs and healthcare providers, particularly those handling complex and costly medications.

Sentiment

The sentiment surrounding HB 876 appears to be predominantly favorable among healthcare providers and patient advocacy groups. Supporters argue that the bill addresses critical inequities in the pharmacy benefits system, particularly for patients requiring specialty medications. They appreciate the proposed enhancements, which are seen as a necessary response to the challenges faced in accessing vital treatments. However, there may be some opposition from PBM representatives and insurance companies who could view the regulations as an encroachment on their operational flexibility and profitability.

Contention

Notably, points of contention may arise regarding the implications this bill carries for the operational models of pharmacy benefits managers. Critics may argue that the restrictions on requiring specific pharmacies could limit the ability of PBMs to negotiate better rates for bulk purchasing, leading to increased costs for insurance providers. Additionally, questions may be raised about the enforcement of the bill's provisions and how they will be monitored to ensure compliance by all parties involved. Overall, the bill represents an essential step towards addressing the needs of patients while potentially challenging existing practices within the pharmacy benefits management industry.

Companion Bills

MD SB526

Crossfiled Health Insurance - Pharmacy Benefits Managers - Specialty Drugs Dispensed by a Physician

Similar Bills

MA S665

Relative to specialty medications and patient safety

MA H1144

Relative to specialty medications and patient safety

MA S777

Relative to specialty medications and patient safety

LA SCR87

Requests the Louisiana Board of Pharmacy to study and make recommendations regarding the use of the terms "specialty drug" and "specialty pharmacy".

CA AB910

Pharmacy benefit management.

CA AB2348

Pharmacy benefit management.

MD HB650

Health Insurance – Reimbursement and Use of Specific Pharmacies and Dispensaries – Prohibitions

MD SB398

Health Insurance - Reimbursement and Use of Specific Pharmacies and Dispensaries - Prohibitions