Oklahoma 2022 Regular Session

Oklahoma House Bill HB2124 Compare Versions

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3		-	SENATE FLOOR VERSION - HB2124 SFLR Page 1
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	3	+	ENGR. H. B. NO. 2124 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 5, 2021
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33	28		ENGROSSED HOUSE
34	29		BILL NO. 2124 By: McEntire, Townley, Frix,
35	30		Grego, Moore, Pae, Boles,
36	31		Johns, Phillips, Lawson,
37	32		Burns, Hilbert, Sterling,
38	33		Roe and Caldwell (Chad) of
39	34		the House
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41	36		and
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43	38		McCortney, Stephens, Hicks
44	39		and Taylor of the Senate
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49	46		An Act relating to professions and occupations;
50	47		amending Section 1, Chapter 263, O.S.L. 2014, as
51	48		amended by Section 7, Chapter 285, O.S.L. 2016 (59
52	49		O.S. Supp. 2020, Section 357), which relates to
53	50		definitions; defining term; amending Section 2,
54	51		Chapter 263, O.S.L. 2014 (59 O.S. Supp. 2020, Section
55	52		358), which relates to pharmacy benefits management
56	53		licensure; modifying the licensing entity; providing
57	54		for the levying of charges, fees, civil penalties or
58	55		restitution; declaring an emergency; and providing
59	56		for contingent effect.
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65	62		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
66	63		SECTION 1. AMENDATORY Section 1, Chapter 263, O.S.L.
67	64		2014, as amended by Section 7, Chapter 285, O.S.L. 2016 (59 O.S.
68	65		Supp. 2020, Section 357), is amended to read as follows:
69	66		Section 357. As used in this act:
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71		-	SENATE FLOOR VERSION - HB2124 SFLR Page 2
72		-	(Bold face denotes Committee Amendments) 1
	68	+	ENGR. H. B. NO. 2124 Page 2 1
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97	93		1. "Commission" or "Pharmacy Choice Commission" means the
98	94		Patient's Right to Pharmacy Choice Commission established by Section
99	95		6966 of Title 36 of the Oklahoma Statutes;
100	96		2. "Covered entity" means a nonprofit ho spital or medical
101	97		service organization, insurer, health coverage plan or health
102	98		maintenance organization; a health program administered by the state
103	99		in the capacity of provider of health coverage; or an employer,
104	100		labor union, or other entity organized in t he state that provides
105	101		health coverage to covered individuals who are employed or reside in
106	102		the state. This term does not include a health plan that provides
107	103		coverage only for accidental injury, specified disease, hospital
108	104		indemnity, disability income, or other limited benefit health
109	105		insurance policies and contracts that do not include prescription
110	106		drug coverage;
111	107		2. 3. "Covered individual" means a member, participant,
112	108		enrollee, contract holder or policy holder or beneficiary of a
113	109		covered entity who is pro vided health coverage by the covered
114	110		entity. A covered individual includes any dependent or other person
115	111		provided health coverage through a policy, contract or plan for a
116	112		covered individual;
117	113		3. 4. "Department" means the Oklahoma Insurance Department;
118	114		4. 5. "Maximum allowable cost" or "MAC" means the list of drug
119	115		products delineating the maximum per -unit reimbursement for
120	116		multiple-source prescription drugs, medical product or device;
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122		-	SENATE FLOOR VERSION - HB2124 SFLR Page 3
123		-	(Bold face denotes Committee Amendments) 1
	118	+	ENGR. H. B. NO. 2124 Page 3 1
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148	143		5. 6. "Multisource drug product reimbursement" (reimbursement)
149	144		means the total amount paid to a pharmacy inclusive of any reduction
150	145		in payment to the pharmacy, excluding prescription dispense fees;
151	146		6. 7. "Pharmacy benefits management" means a service provided
152	147		to covered entities to facilitate the provision of prescription dr ug
153	148		benefits to covered individuals within the state, including
154	149		negotiating pricing and other terms with drug manufacturers and
155	150		providers. Pharmacy benefits management may include any or all of
156	151		the following services:
157	152		a. claims processing, retail network m anagement and
158	153		payment of claims to pharmacies for prescription drugs
159	154		dispensed to covered individuals,
160	155		b. clinical formulary development and management
161	156		services,
162	157		c. rebate contracting and administration,
163	158		d. certain patient compliance, therapeutic intervent ion
164	159		and generic substitution programs, or
165	160		e. disease management programs;
166	161		7. 8. "Pharmacy benefits manager" or "PBM" means a person,
167	162		business or other entity that performs pharmacy benefits management.
168	163		The term includes a person or entity acting for a PB M in a
169	164		contractual or employment relationship in the performance of
170	165		pharmacy benefits management for a managed care company, nonprofit
171	166		hospital, medical service organization, insurance company, third -
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173		-	SENATE FLOOR VERSION - HB2124 SFLR Page 4
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	168	+	ENGR. H. B. NO. 2124 Page 4 1
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199	193		party payor, or a health program administered by an agen cy of this
200	194		state;
201	195		8. 9. "Plan sponsor" means the employers, insurance companies,
202	196		unions and health maintenance organizations or any other entity
203	197		responsible for establishing, maintaining, or administering a health
204	198		benefit plan on behalf of covered individ uals; and
205	199		9. 10. "Provider" means a pharmacy licensed by the State Board
206	200		of Pharmacy, or an agent or representative of a pharmacy, including,
207	201		but not limited to, the pharmacy's contracting agent, which
208	202		dispenses prescription drugs or devices to covered in dividuals.
209	203		SECTION 2. AMENDATORY Section 2, Chapter 263, O.S.L.
210	204		2014 (59 O.S. Supp. 2020, Section 358), is amended to read as
211	205		follows:
212	206		Section 358. A. In order to provide pharmacy benefits
213	207		management or any of the services inclu ded under the definition of
214	208		pharmacy benefits management in this state, a pharmacy benefits
215	209		manager or any entity acting as one in a contractual or employment
216	210		relationship for a covered entity shall first obtain a license from
217	211		the Pharmacy Choice Commissio n of the Oklahoma Insurance Department,
218	212		and the Department Commission may charge a fee for such licensure.
219	213		B. The Department Pharmacy Choice Commission shall establish,
220	214		by regulation, licensure procedures, required disclosures for
221	215		pharmacy benefits manage rs (PBMs) and other rules as may be
222	216		necessary for carrying out and enforcing the provisions of this act.
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224		-	SENATE FLOOR VERSION - HB2124 SFLR Page 5
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	218	+	ENGR. H. B. NO. 2124 Page 5 1
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250	243		The licensure procedures shall, at a minimum, include the completion
251	244		of an application form that shall include the name and address of an
252	245		agent for service of process, the payment of a requisite fee, and
253	246		evidence of the procurement of a surety bond.
254	247		C. The Department Pharmacy Choice Commission may subpoena
255	248		witnesses and information. Its compliance officers may take and
256	249		copy records for investigative u se and prosecutions. Nothing in
257	250		this subsection shall limit the Office of the Attorney General from
258	251		using its investigative demand authority to investigate and
259	252		prosecute violations of the law.
260	253		D. The Department Pharmacy Choice Commission may suspend,
261	254		revoke or refuse to issue or renew a license for noncompliance with
262	255		any of the provisions hereby established or with the rules
263	256		promulgated by the Department Commission; for conduct likely to
264	257		mislead, deceive or defraud the public or the Department Commission;
265	258		for unfair or deceptive business practices or for nonpayment of a
266	259		renewal fee or fine. The Department Commission may also levy
267	260		administrative charges, fees, civil penalties, restitution or fines
268	261		for each count of which a licensee has been convicted in a
269	262		Department Commission hearing.
270	263		SECTION 3. It being immediately necessary for the preservation
271	264		of the public peace, health or safety, an emergency is hereby
272	265		declared to exist, by reason whereof this act shall take effect and
273	266		be in full force from and after its passage and approval.
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275		-	SENATE FLOOR VERSION - HB2124 SFLR Page 6
276		-	(Bold face denotes Committee Amendments) 1
	268	+	ENGR. H. B. NO. 2124 Page 6 1
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301	293		SECTION 4. The provisions of this act shall be contingent upon
302	294		the enactment of Enrolled House Bill No. 2123 of the 1st Session of
303	295		the 58th Oklahoma Legislature.
304		-	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
305		-	April 5, 2021 - DO PASS
	296	+	Passed the House of Representative s the 8th day of March, 2021.
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	301	+	Presiding Officer of the House
	302	+	of Representatives
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	305	+	Passed the Senate the ___ day of __________, 2021.
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	310	+	Presiding Officer of the Senate
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