Mississippi Senate Bill SB2754

Mississippi 2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 3/5/24

Caption

Pharmacy benefit managers; set certain requirements related thereto, including claim administration and reimbursements.

Impact

If enacted, SB2754 would lead to significant changes in the relationship between pharmacies and pharmacy benefit managers. It would impose stricter regulations on PBMs, particularly regarding how they calculate reimbursement rates and penalties for non-compliance. The legislation seeks to ensure transparency in pricing practices and fortify the protection of pharmacies from unfair reimbursement practices, thereby potentially improving financial sustainability for local pharmacies and increasing patient access to necessary medications.

Summary

Senate Bill 2754 aims to amend the Mississippi Code related to pharmacy benefit managers (PBMs) by defining new terms and updating various existing regulations. Key amendments include the establishment of a process whereby pharmacies can appeal reimbursements they deem insufficient and a mandate for PBMs to provide a clear, administrative appeal mechanism. This approach aims to ensure that pharmacies receive fair compensation for prescription drugs, as reimbursements should not fall below a specified acquisition cost required for the drugs supplied.

Contention

There were notable discussions surrounding the potential implications of SB2754 on both the pharmacy industry and health insurance markets. Proponents of the bill argue that it would curtail practices that restrict fair competition and support pharmacists in maintaining viable business operations. However, opponents express concerns that increasing regulations on PBMs could lead to higher drug costs for consumers as the PBMs may pass those additional costs through to the end-users. Balancing the need for fair pharmacy practices against the potential for increased costs serves as a central point of contention in legislative discussions.