Pennsylvania House Bill HB1993

Pennsylvania 2023-2024 Regular Session

• Introduced: 4/3/24
• Refer: 4/3/24
• Refer: 6/12/24
• Report Pass: 6/27/24
• Refer: 6/27/24
• Engrossed: 6/28/24
• Refer: 6/30/24
• Refer: 7/9/24
• Report Pass: 7/10/24
• Refer: 7/10/24
• Report Pass: 7/11/24
• Enrolled: 7/12/24
• Chaptered: 7/17/24
• Passed: 7/17/24

Caption

Further providing for title of act; in preliminary provisions, further providing for short title, for scope of act and for definitions and providing for regulations; in pharmacy audits, further providing for limitations; in registration, further providing for PBM and auditing entity registration; providing for pharmacy benefits manager contracts; in PBM cost transparency requirements, providing for PBM transparency report required, repealing provisions relating to regulations and providing for PSAO reporting requirements; in enforcements, further providing for scope of enforcement authority; providing for pharmacy services; and making repeals.

Impact

The legislation is expected to have significant implications for state laws regarding pharmacy operations and healthcare accessibility. By enforcing stricter regulations on PBMs, HB 1993 aims to mitigate rising drug costs faced by consumers, ultimately improving affordability. Additionally, the act restricts certain unfair practices that have historically placed a financial burden on pharmacies, further promoting local pharmacy services and enhancing patient access to necessary medications.

Summary

House Bill 1993 focuses on the reform of Pharmacy Benefit Managers (PBMs) by introducing new regulations aimed at enhancing transparency in drug pricing and reimbursement practices. The bill prohibits practices such as patient steering and spread pricing, thereby ensuring that consumers and pharmacies are treated fairly. It establishes guidelines for PBM contracts and requires them to adhere to the National Average Drug Acquisition Cost for reimbursement rates. The measure is designed to protect consumers from overcharging and ensure pharmacies are adequately compensated for the services they provide.

Sentiment

Overall, the sentiment surrounding HB 1993 is largely positive among consumer advocates and healthcare providers who champion the need for greater transparency in the pharmacy sector. Proponents argue that this bill will lead to more equitable pricing and better health outcomes for patients. However, there are concerns regarding the potential for PBMs to adjust to these regulations in ways that may still disadvantage local pharmacies, leading to a sentiment of caution among some stakeholders.

Contention

Notable points of contention include the balance between regulation and the operational complexities introduced for PBMs. Some stakeholders express apprehension that overly stringent rules could make it more challenging for PBMs to negotiate better prices with drug manufacturers, which in turn could affect overall drug prices. There is also debate over whether the new transparency requirements will be enough to foster significant change or if additional reforms will be necessary in the future.