HB197--PAYMENTSFORPRESCRIPTIONDRUGS SPONSOR:Wright Thisbillisrelatedtopaymentsforprescriptiondrugs.BeginningMarch1,2025,andannually thereafter,apharmacybenefitsmanager(PBM)utilizedbytheMissouriConsolidatedHealthCare PlanshallfileareportwiththePlanfortheimmediatelyprecedingcalendaryearregardingrebates, asdefinedinthebill.Thereportshallinclude: (1)Theaggregatedollaramountofrebatescollectedfrompharmaceuticalmanufacturers; (2)TheaggregatedollaramountoftherebatesthatwerenotpassedontothePlan,and (3)Theaggregatedollaramountofallfeesandpaymentsreceivedfrompharmaceutical manufacturers. ThePlanshallestablishaformforthereportingthatminimizesadministrativeburdenandcost. Documents,materials,andotherinformationsubmittedtothePlanshallnotbesubjectto disclosureorcompromisethefinancial,competitive,orproprietarynatureoftheinformation,or allowathirdpartytoidentifyrebatevaluesforaparticularoutpatientprescriptiondrug,exceptto theextenttheyarereportedintheaggregate.ThePlanshallannuallyreporttotheGeneral Assemblytheaggregatedollaramountofpharmaceuticalrebatesandprovideinformation describingtherebatepracticesofhealthcarriersutilizingpharmacybenefitsmanagers.ThePlan mayimposeapenaltyofupto$7,500onitsPBMforeachviolationoftheseprovisions(Section 103.200,RSMo). Thebillspecifiesthatcertainprovisionsoflawpertainingtopharmacistsandpharmaciesshallnot beconstruedtoprohibitpatients'abilitytoobtainprescriptionservicesfromanylicensed pharmacist"orpharmacy",andrepealslanguagespecifyingthattheprovisionsdonotremove patients'abilitytowaivetheirfreedomofchoiceunderacontractwithregardtopaymentor coverageofprescriptionexpensesandnoPBMshallpenalizeorrestrictahealthcarrierorenrollees fromobtainingservicesfromacontractedpharmacy(Section338.015). Additionally,thebillrepealsaprovisionoflawspecifyingthatcertainPBMregulationsshallnot applywithregardtoMedicarePartD,orotherhealthplansregulatedpartlyorwhollyunderfederal law.Pharmacybenefitsmanagersshallnotifyhealthcarriersandpharmaciesinwritingofany potentialconflictofinterest,includingbutnotlimitedtocommonownershiporanyother relationshipbetweenthePBMandanyotherhealthcarrierorpharmacywithwhichthePBM contracts.Thebillprovidesstandardizeddefinitionsfortheterms"generic"and"rebate" applicabletoPBMsandhealthcarriers,andspecifiesthatPBMsshalloweafiduciarydutytothe stateoranyhealthcarrier,healthbenefitplan,orpoliticalsubdivisionwithwhichitcontracts (Section376.387). Thebillrepealsaportionofadefinitiontospecifythatcertainprovisionsrelatingtothemaximum allowablecostofaprescriptiondrugareapplicabletoallpharmacies,ratherthanonlyto contractedpharmacies.Ifthereimbursementforadrugtoacontractedpharmacyisbelowthe pharmacy'scosttopurchasethedrug,thePBMshallsustainanappealandincrease reimbursementforthepharmacyandothercontractedpharmaciestocoverthecostofpurchasing thedrug(Section376.388). Thebillspecifiesthathealthcarriersorpharmacybenefitsmanagerscannotdiscriminateagainsta coveredentity,asdefinedinthePublicHealthServiceAct,orapharmacylicensedunderChapter 338withwhichacoveredentityhascontractedtodispense340Bdrugsonbehalfofthecovered entity.TheDirectoroftheDepartmentofCommerceandInsuranceshallenforcetheserulesand imposeacivilpenaltythatshallnotexceed$5000perviolationperdayonanypharmacybenefits managerthatviolatestheseprovisions(Section376.414). ThisbillissimilartoHB1677(2022).