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4 | 4 | | Req. No. 3060 Page 1 1 |
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53 | 53 | | STATE OF OKLAHOMA |
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54 | 54 | | |
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55 | 55 | | 2nd Session of the 59th Legislature (2024) |
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56 | 56 | | |
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57 | 57 | | SENATE BILL 1567 By: Daniels |
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58 | 58 | | |
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59 | 59 | | |
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60 | 60 | | |
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61 | 61 | | |
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62 | 62 | | |
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63 | 63 | | AS INTRODUCED |
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64 | 64 | | |
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65 | 65 | | An Act relating to pharmacy benefits management; |
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66 | 66 | | amending 36 O.S. 2021, Section 6960, as amended by |
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67 | 67 | | Section 1, Chapter 38, O.S.L. 2022 (36 O.S. Supp. |
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68 | 68 | | 2023, Section 6960), which relates to the Patient ’s |
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69 | 69 | | Right to Pharmacy Choice Act; modifying definition; |
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70 | 70 | | updating statutory language; amending 59 O.S. 2021, |
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71 | 71 | | Section 357, which relates to the Pharmacy Audit |
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72 | 72 | | Integrity Act; modifying definition; updating |
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73 | 73 | | statutory references; and providing an effective |
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74 | 74 | | date. |
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75 | 75 | | |
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76 | 76 | | |
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77 | 77 | | |
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78 | 78 | | |
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79 | 79 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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80 | 80 | | SECTION 1. AMENDATORY 36 O.S. 2021, Section 6960, as |
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81 | 81 | | amended by Section 1, Chapter 38, O.S.L. 2022 (36 O.S. Supp. 2023, |
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82 | 82 | | Section 6960), is amended to read as follows: |
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83 | 83 | | Section 6960. For purposes of the Patient ’s Right to Pharmacy |
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84 | 84 | | Choice Act: |
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85 | 85 | | 1. “Health insurer” means any corporation, association, benefit |
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86 | 86 | | society, exchange, partnership or individ ual licensed by the |
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87 | 87 | | Oklahoma Insurance Code; |
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88 | 88 | | 2. “Health insurer payor” means a health insurance company, |
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89 | 89 | | health maintenance organization, union, hospital and medical |
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140 | 140 | | |
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141 | 141 | | services organization or any entity providing or admin istering a |
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142 | 142 | | self-funded health benefit plan; |
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143 | 143 | | 3. “Mail-order pharmacy” means a pharmacy licensed by this |
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144 | 144 | | state that primarily dispenses and delivers covered drugs via common |
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145 | 145 | | carrier; |
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146 | 146 | | 4. “Pharmacy benefits manager ” or “PBM” means a person that |
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147 | 147 | | performs pharmacy benefits management , as defined in Section 357 of |
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148 | 148 | | Title 59 of the Oklahoma Statutes, and any other person acting for |
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149 | 149 | | such person under a contractual or employm ent relationship in the |
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150 | 150 | | performance of pharmacy benefits management for a managed-care |
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151 | 151 | | managed care company, nonprofit hospital, medica l service |
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152 | 152 | | organization, insurance company, third -party payor or a health |
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153 | 153 | | program administered by a department of this state; |
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154 | 154 | | 5. “Provider” means a pharmacy, as defined in Section 353.1 of |
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155 | 155 | | Title 59 of the Oklahoma Statutes or an agent or representative of a |
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156 | 156 | | pharmacy; |
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157 | 157 | | 6. “Retail pharmacy network” means retail pharmacy providers |
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158 | 158 | | contracted with a PBM in which the pharmacy primari ly fills and |
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159 | 159 | | sells prescriptions via a retail, storefront location; |
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160 | 160 | | 7. “Rural service area” means a five-digit ZIP code in which |
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161 | 161 | | the population density is less than one thousand (1,000) individu als |
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162 | 162 | | per square mile; |
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163 | 163 | | 8. “Spread pricing” means a prescription drug pricing model |
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164 | 164 | | utilized by a pharmacy benefits manager in which the PBM cha rges a |
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216 | 216 | | health benefit plan a contracted price for prescription drugs that |
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217 | 217 | | differs from the amount the PBM dir ectly or indirectly pays the |
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218 | 218 | | pharmacy or pharmacist for pr oviding pharmacy services; |
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219 | 219 | | 9. “Suburban service area ” means a five-digit ZIP code in which |
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220 | 220 | | the population density is between one thousand (1,000) and three |
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221 | 221 | | thousand (3,000) individuals per square mile ; and |
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222 | 222 | | 10. “Urban service area” means a five-digit ZIP code in which |
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223 | 223 | | the population density is greater than three thousand (3,000) |
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224 | 224 | | individuals per square mile. |
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225 | 225 | | SECTION 2. AMENDATORY 59 O.S. 202 1, Section 357, is |
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226 | 226 | | amended to read as follows: |
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227 | 227 | | Section 357. As used in this act Section 357 et seq. of this |
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228 | 228 | | title: |
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229 | 229 | | 1. “Covered entity” means a nonprofit hospital or medical |
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230 | 230 | | service organization, insurer, health coverage plan or h ealth |
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231 | 231 | | maintenance organization; a health program administered by the state |
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232 | 232 | | in the capacity of provider of health coverage; or an employer, |
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233 | 233 | | labor union, or other entity organized in the state that provides |
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234 | 234 | | health coverage to covered individuals who are empl oyed or reside in |
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235 | 235 | | the state. This term does not include a workers’ compensation |
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236 | 236 | | insurer or health plan that provides coverage only for accidental |
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237 | 237 | | injury, specified disease , hospital indemnity, disability income, or |
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238 | 238 | | other limited benefit health insurance p olicies and contracts that |
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239 | 239 | | do not include prescription drug coverage; |
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291 | 291 | | 2. “Covered individual” means a member, participant, enrollee, |
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292 | 292 | | contract holder or policy holder or beneficiary of a covered entity |
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293 | 293 | | who is provided health coverage by the covered entity. A covered |
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294 | 294 | | individual includes any depen dent or other person provide d health |
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295 | 295 | | coverage through a policy, contract or plan for a covered |
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296 | 296 | | individual; |
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297 | 297 | | 3. “Department” means the Oklahoma Insurance Department; |
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298 | 298 | | 4. “Maximum allowable cost ” or “MAC” means the list of drug |
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299 | 299 | | products delineating the maximum per -unit reimbursement for |
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300 | 300 | | multiple-source prescription drugs, medical product or device; |
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301 | 301 | | 5. “Multisource drug product reimbursement ” (reimbursement) |
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302 | 302 | | means the total amount paid to a pharmacy inclusive of any re duction |
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303 | 303 | | in payment to the pharmacy, excluding prescription dispense f ees; |
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304 | 304 | | 6. “Pharmacy benefits management ” means a service provided to |
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305 | 305 | | covered entities to facilitate the provision o f prescription drug |
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306 | 306 | | benefits to covered individuals within the state, inc luding |
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307 | 307 | | negotiating pricing and other terms with drug manufacturers and |
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308 | 308 | | providers. Pharmacy benefits management may include any or all of |
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309 | 309 | | the following services: |
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310 | 310 | | a. claims processing, retail network management and |
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311 | 311 | | payment of claims to pharmacies for prescr iption drugs |
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312 | 312 | | dispensed to covered individuals, |
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313 | 313 | | b. clinical formulary development and management |
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314 | 314 | | services, |
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365 | 365 | | |
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366 | 366 | | c. rebate contracting and administration, |
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367 | 367 | | d. certain patient compliance, ther apeutic intervention |
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368 | 368 | | and generic substitution programs, or |
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369 | 369 | | e. disease management programs; |
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370 | 370 | | 7. “Pharmacy benefits manager ” or “PBM” means a person, |
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371 | 371 | | business or other entity that performs pharmacy benefits management. |
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372 | 372 | | The term includes a person or entity acting for a PBM in a |
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373 | 373 | | contractual or employment relationship in the perfor mance of |
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374 | 374 | | pharmacy benefits management for a managed care company, non profit |
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375 | 375 | | hospital, medical service organization, insurance company, third - |
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376 | 376 | | party payor, or a health program administe red by an agency of this |
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377 | 377 | | state; |
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378 | 378 | | 8. “Plan sponsor” means the employers, i nsurance companies, |
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379 | 379 | | unions and health maintenance organizations or any other entity |
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380 | 380 | | responsible for establishing, maintaining, or administering a health |
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381 | 381 | | benefit plan on behalf of covered individuals; and |
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382 | 382 | | 9. “Provider” means a pharmacy licensed by the Stat e Board of |
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383 | 383 | | Pharmacy, or an agent or representative of a pharmacy, inc luding, |
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384 | 384 | | but not limited to, the pharmacy ’s contracting agent, which |
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385 | 385 | | dispenses prescription drugs or devices to cov ered individuals. |
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386 | 386 | | SECTION 3. This act shall become effec tive November 1, 2024. |
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387 | 387 | | |
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388 | 388 | | 59-2-3060 RD 1/5/2024 3:26:54 PM |
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