Req. No. 5138 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Leg islature (2023) HOUSE BILL 1598 By: Martinez AS INTRODUCED An Act relating to insurance; amending 36 O.S. 2021, Section 6961, which relates to retail pharmacy network access standards; remov ing the State standards for network access; adding the Federal standards for network access; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 36 O.S. 2021, Section 6961, is amended to read as follows : Section 6961. A. Pharmacy benefits managers (PBMs) shall comply with the following retail pharmacy network access standards: 1. At least ninety percent (90%) of covered individuals residing in an urban service a rea live within two (2) miles of a retail pharmacy participating in the PBM 's retail pharmacy network; 2. At least ninety percent (90%) of covered individuals residing in an urban service area live wit hin five (5) miles of a retail pharmacy designated as a preferred participating pharmacy in the PBM's retail pharmacy network; Req. No. 5138 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. At least ninety percent (90%) of covered individuals residing in a suburban service area live within five (5) miles of a retail pharmacy participating in the PBM 's retail pharmacy network; 4. At least ninety percent (90%) of covered individuals residing in a suburban service area live within seven (7) miles of a retail pharmacy designated as a preferred participating pharmacy i n the PBM's retail pharmacy network; 5. At least seventy percent (70%) of covered individuals residing in a rural service area live within fifteen (15) miles of a retail pharmacy participating in the PBM 's retail pharmacy network; and 6. At least seventy percent (70%) of covered individuals residing in a rural service area live within eighteen (18) miles of a retail pharmacy designated as a preferred participating pharmacy in the PBM's retail pharmacy network. For all retail pharmacy networks managed by p harmacy benefits managers (PBMs) in the State of Oklahoma, each PBM shall comply with the pharmacy network access standards set forth under Federal law at 42 CFR 423.120(a)(1) (Standards for convenient access to network pharmacies) as the same may be amended from time to time. B. Mail-order pharmacies shall not be used to meet access standards for retail pharmacy networks. C. Pharmacy benefits managers shall not require patients to use pharmacies that are directly or indirectly owned by the pharmacy Req. No. 5138 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 benefits manager, including all regular prescriptions, refi lls or specialty drugs regardless of day supply. D. Pharmacy benefits managers shall not in any manner on any material, including but not limited to mail and ID cards, include the name of any pharmacy , hospital or other providers unless it specifically lists all pharmacies, hospitals and providers participating in the prefe rred and nonpreferred pharmacy and health networks. SECTION 2. This act shall become effective November 1, 2023. 59-1-5138 TJ 12/19/22