Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1567 Compare Versions

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5353 STATE OF OKLAHOMA
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5555 2nd Session of the 59th Legislature (2024)
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5757 SENATE BILL 1567 By: Daniels
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6363 AS INTRODUCED
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6565 An Act relating to pharmacy benefits management;
6666 amending 36 O.S. 2021, Section 6960, as amended by
6767 Section 1, Chapter 38, O.S.L. 2022 (36 O.S. Supp.
6868 2023, Section 6960), which relates to the Patient ’s
6969 Right to Pharmacy Choice Act; modifying definition;
7070 updating statutory language; amending 59 O.S. 2021,
7171 Section 357, which relates to the Pharmacy Audit
7272 Integrity Act; modifying definition; updating
7373 statutory references; and providing an effective
7474 date.
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7979 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
8080 SECTION 1. AMENDATORY 36 O.S. 2021, Section 6960, as
8181 amended by Section 1, Chapter 38, O.S.L. 2022 (36 O.S. Supp. 2023,
8282 Section 6960), is amended to read as follows:
8383 Section 6960. For purposes of the Patient ’s Right to Pharmacy
8484 Choice Act:
8585 1. “Health insurer” means any corporation, association, benefit
8686 society, exchange, partnership or individ ual licensed by the
8787 Oklahoma Insurance Code;
8888 2. “Health insurer payor” means a health insurance company,
8989 health maintenance organization, union, hospital and medical
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141141 services organization or any entity providing or admin istering a
142142 self-funded health benefit plan;
143143 3. “Mail-order pharmacy” means a pharmacy licensed by this
144144 state that primarily dispenses and delivers covered drugs via common
145145 carrier;
146146 4. “Pharmacy benefits manager ” or “PBM” means a person that
147147 performs pharmacy benefits management , as defined in Section 357 of
148148 Title 59 of the Oklahoma Statutes, and any other person acting for
149149 such person under a contractual or employm ent relationship in the
150150 performance of pharmacy benefits management for a managed-care
151151 managed care company, nonprofit hospital, medica l service
152152 organization, insurance company, third -party payor or a health
153153 program administered by a department of this state;
154154 5. “Provider” means a pharmacy, as defined in Section 353.1 of
155155 Title 59 of the Oklahoma Statutes or an agent or representative of a
156156 pharmacy;
157157 6. “Retail pharmacy network” means retail pharmacy providers
158158 contracted with a PBM in which the pharmacy primari ly fills and
159159 sells prescriptions via a retail, storefront location;
160160 7. “Rural service area” means a five-digit ZIP code in which
161161 the population density is less than one thousand (1,000) individu als
162162 per square mile;
163163 8. “Spread pricing” means a prescription drug pricing model
164164 utilized by a pharmacy benefits manager in which the PBM cha rges a
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216216 health benefit plan a contracted price for prescription drugs that
217217 differs from the amount the PBM dir ectly or indirectly pays the
218218 pharmacy or pharmacist for pr oviding pharmacy services;
219219 9. “Suburban service area ” means a five-digit ZIP code in which
220220 the population density is between one thousand (1,000) and three
221221 thousand (3,000) individuals per square mile ; and
222222 10. “Urban service area” means a five-digit ZIP code in which
223223 the population density is greater than three thousand (3,000)
224224 individuals per square mile.
225225 SECTION 2. AMENDATORY 59 O.S. 202 1, Section 357, is
226226 amended to read as follows:
227227 Section 357. As used in this act Section 357 et seq. of this
228228 title:
229229 1. “Covered entity” means a nonprofit hospital or medical
230230 service organization, insurer, health coverage plan or h ealth
231231 maintenance organization; a health program administered by the state
232232 in the capacity of provider of health coverage; or an employer,
233233 labor union, or other entity organized in the state that provides
234234 health coverage to covered individuals who are empl oyed or reside in
235235 the state. This term does not include a workers’ compensation
236236 insurer or health plan that provides coverage only for accidental
237237 injury, specified disease , hospital indemnity, disability income, or
238238 other limited benefit health insurance p olicies and contracts that
239239 do not include prescription drug coverage;
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291291 2. “Covered individual” means a member, participant, enrollee,
292292 contract holder or policy holder or beneficiary of a covered entity
293293 who is provided health coverage by the covered entity. A covered
294294 individual includes any depen dent or other person provide d health
295295 coverage through a policy, contract or plan for a covered
296296 individual;
297297 3. “Department” means the Oklahoma Insurance Department;
298298 4. “Maximum allowable cost ” or “MAC” means the list of drug
299299 products delineating the maximum per -unit reimbursement for
300300 multiple-source prescription drugs, medical product or device;
301301 5. “Multisource drug product reimbursement ” (reimbursement)
302302 means the total amount paid to a pharmacy inclusive of any re duction
303303 in payment to the pharmacy, excluding prescription dispense f ees;
304304 6. “Pharmacy benefits management ” means a service provided to
305305 covered entities to facilitate the provision o f prescription drug
306306 benefits to covered individuals within the state, inc luding
307307 negotiating pricing and other terms with drug manufacturers and
308308 providers. Pharmacy benefits management may include any or all of
309309 the following services:
310310 a. claims processing, retail network management and
311311 payment of claims to pharmacies for prescr iption drugs
312312 dispensed to covered individuals,
313313 b. clinical formulary development and management
314314 services,
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366366 c. rebate contracting and administration,
367367 d. certain patient compliance, ther apeutic intervention
368368 and generic substitution programs, or
369369 e. disease management programs;
370370 7. “Pharmacy benefits manager ” or “PBM” means a person,
371371 business or other entity that performs pharmacy benefits management.
372372 The term includes a person or entity acting for a PBM in a
373373 contractual or employment relationship in the perfor mance of
374374 pharmacy benefits management for a managed care company, non profit
375375 hospital, medical service organization, insurance company, third -
376376 party payor, or a health program administe red by an agency of this
377377 state;
378378 8. “Plan sponsor” means the employers, i nsurance companies,
379379 unions and health maintenance organizations or any other entity
380380 responsible for establishing, maintaining, or administering a health
381381 benefit plan on behalf of covered individuals; and
382382 9. “Provider” means a pharmacy licensed by the Stat e Board of
383383 Pharmacy, or an agent or representative of a pharmacy, inc luding,
384384 but not limited to, the pharmacy ’s contracting agent, which
385385 dispenses prescription drugs or devices to cov ered individuals.
386386 SECTION 3. This act shall become effec tive November 1, 2024.
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388388 59-2-3060 RD 1/5/2024 3:26:54 PM