Ensures that independent pharmacies are protected from pharmacy benefit discrimination toward non-affiliated pharmacies and helps protect consumers' ability to choose local, independent pharmacies.
Impact
The implications of H7720 on state law are significant, as it seeks to amend existing insurance legislation to include comprehensive regulations for PBMs. By defining PBMs as third-party administrators, the bill enhances accountability and transparency in the financial dealings between PBMs and insurers. This legislative change is indicative of a broader trend toward protecting local healthcare providers and safeguarding consumer interests in the pharmacy sector.
Summary
House Bill H7720, introduced to the Rhode Island General Assembly, focuses on the regulation of pharmacy benefits managers (PBMs) and aims to protect independent pharmacies from discrimination associated with PBM practices. The bill mandates that PBMs must adhere to specific reimbursement standards, ensuring they cannot compensate pharmacies below the established national average drug acquisition costs and specified professional dispensing fees. This is intended to promote fair competition among pharmacies and ensure consumers have access to local, independent options.
Contention
There is likely to be contention surrounding HB H7720, particularly concerning the differing interests of large pharmacy chains and independent pharmacies. Supporters argue that the bill is essential for protecting consumers and ensuring the viability of independent pharmacies in the face of competition from larger entities that may leverage their scale to negotiate unfavorable terms. Conversely, opponents may contend that such regulations could lead to increased costs for insurers and potentially limit the available options for consumers in terms of pharmacy services.