Req. No. 2396 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 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 2nd Session of the 59th Legislature (2024) SENATE BILL 1955 By: Standridge AS INTRODUCED An Act relating to the Patient’s Right to Pharmacy Choice Act; defining terms; authorizing cause of action for certain violations; a uthorizing award of certain costs and fees; requiring award of certain damages upon specified sho wing by plaintiff; authorizing joinder of certain actions; providing for division of certain damage award; requiring certain evidence; authorizing discovery of specified information; authorizing intervention of Attorney General; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 6696.2 of Title 36, unless there is created a duplication in numbering, reads as follows: A. As used in this act: 1. “Closely aligned pharmacy provider” means a pharmacy provider wholly or partially own ed by: a. the pharmacy benefits manager (PBM), b. an entity that owns any portion of the PBM, c. an entity owned wholly or partially by the PBM, or Req. No. 2396 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 d. an entity closely aligned with the PBM which would be established by any other working relationship betwe en the PBM and the pharmacy provider which would be construed as being beneficial to the PBM ; 2. “Damages” includes, but is not limited to, the difference in reimbursement between the plaintiff or plaintif fs and the highest total reimbursement, including drug pricing and any associated reimbursed costs, of a closely aligned pharmacy provider or any pharmacy provider that would be considered in competition with the plaintiff or plaintiffs providing pharmacy services to the PBM; 3. “Drug pricing” includes but is not limited to drug costs, rebates, incentives, discounts, kickbacks, profits, spread pricing, fees, and other pricing information that would cause a disparit y between reimbursement for the plaintiff or plaintiffs and other contracted pharmacy provid ers of the PBM; 4. “Payment history” includes but is not limited to direct payments, rebates, discounts, kickbacks, credits , or any other form of benefit to the payee; and 5. “Pharmacy contract” means any contract between a PB M and a pharmacy provider. B. 1. A licensed pharmacy or pharmacist located in this state who is aggrieved by a violation of the Patient’s Right to Pharmacy Choice Act, Section 6959 et seq. o f Title 36 of the Oklahoma Statutes, related to pricing models or reimbursement r ates by a Req. No. 2396 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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 pharmacy benefits manager (PBM) or the entity for which the PBM performs pharmacy benefits management shall have a cause of action against the PBM or entity to recover damages attributable to such violation. In addition to actual damages, a court may award court costs and reasonable attorney fees. 2. If a plaintiff shows that the disparity in reimbursement between the amount the PBM reimburses the plaintiff and the amount the PBM reimburses either a closely aligned pharmacy provider or any pharmacy provider that would be considered in competition with the plaintiff is financially harmful to the plaintiff while beneficial to the other provider, then such damage will be considered unnecessarily harmful to the plaintiff and the court shall award damages to the plaintiff in an amount needed to cover the financial, personal, and business harm that resulted from such unnecessary financial harm and an amount needed to bring the plaintiff to the financial position tha t would have occurred if such unnecessary financial harm was not inflicted. 3. If more than one licensed pharmacy or pharmacist has similar damages from the same PBM , such pharmacies or pharmacists may join their cause of action and any damage award shall be divided among the aggrieved parties according to the proportion of damages each party sustained. C. A licensed pharmacy or pharmacis t, or more than one of either or both, filing an action pursuant to subsection B of this Req. No. 2396 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 section shall be required to present evidence of a consistent reimbursement rate that is less than the combined total of the cost of medication and the averag e cost of dispensing the medication as recognized in the industry. Each plaintiff must show a minimum of twelve (12) such instances in a ninety -day period to sustain a claim for damages under this section. D. In an action filed pursuant to this section, the plain tiff or plaintiffs shall have rights of discovery in all relevant areas to determine the existence of unfair, anti-competitive, or monopolistic actions on behalf of the PBM. Such discovery may include but not be limited to : 1. Payment history and pharmacy contracts for similar pharmacy services to any closely aligned pharmacy provider or any pharmacy provider that would be considered in compe tition with the plaintiff or plaintiffs; 2. Communications related to the contract of the plaintiff or plaintiffs; 3. Drug pricing or communications about drug pricing related to the plaintiff or plaintiffs, any closely aligned pharmacy provider, or contracted pharmacy providers o f the PBM that would be considered competitors of the plaintiff or plaintiffs; or 4. Any information or communication related to the disparity i n reimbursement between the plaintiff or plaintiffs and any contracted pharmacy provider of the PBM when such i nformation or communication Req. No. 2396 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 would show anti-competitive or unfair business practices on the p art of the PBM. E. In addition to the oversight and investigative authority granted under the Patient’s Right to Pharmacy Choice Act, the Attorney General may int ervene in any action filed pursuant to subsection B of this section. SECTION 2. It being immediately necessary for the preservat ion of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval. 59-2-2396 TEK 1/18/2024 1:13:25 PM