Health care; creating the Oklahoma Rebate Pass-Through and Pharmacy Benefits Manager Meaningful Transparency Act of 2025; clarifying authority to take certain actions. Effective date.
If enacted, SB1025 will amend existing statutes related to the regulation of PBMs and their contractual obligations. The bill proposes new definitions and duties for PBMs, communicating clear expectations around their reporting and rebate-sharing practices. Furthermore, it introduces penalties for non-compliance, which will empower the Insurance Commissioner to impose fines for violations, aiming to ensure greater accountability among PBMs. This legislation has significant potential to affect state regulations, impacting how PBMs manage contracts with health plans and pharmacies.
Senate Bill 1025, introduced in Oklahoma, seeks to enhance transparency in prescription drug pricing and pharmacy benefits management through the establishment of the Oklahoma Rebate Pass-Through and Pharmacy Benefits Manager Meaningful Transparency Act of 2025. The bill mandates that pharmacy benefits managers (PBMs) disclose detailed information about the rebates they receive from drug manufacturers and how these rebates affect consumer costs at the point of sale. Specifically, the legislation aims for at least 85% of these rebates to be reflected in enrollees' cost-sharing responsibilities, ultimately reducing their out-of-pocket expenses for prescription drugs.
While supporters of SB1025 argue that the bill will foster fairer pricing and greater transparency within the pharmaceutical market, critics raise concerns about its implementation and potential effects on existing healthcare dynamics. Notably, there are apprehensions regarding how the requirements for PBMs to disclose sensitive financial information might affect their operations and relationships with healthcare providers. Additional discussions among legislators indicate a divide over the balance between improving transparency and ensuring that PBMs can operate efficiently without excessively burdensome regulations.