Texas Senate Bill SB727

Texas 2021 - 87th Regular

Caption

Relating to certain prohibited practices by pharmacy benefit managers.

Impact

The bill will amend the Insurance Code and is expected to enhance the transparency of PBM operations, potentially leading to increased access to medications for patients. By curtailing the ability of PBMs to direct patients exclusively to their affiliated pharmacies, the legislation seeks to support a more diverse pharmacy marketplace, which could likely benefit consumers through better prices and service options.

Summary

Senate Bill 727 aims to regulate the behavior of pharmacy benefit managers (PBMs) in Texas, particularly concerning their referral practices and handling of patient information. It establishes specific prohibitions against steering patients towards affiliated pharmacies, requiring that communication regarding pharmacy options must include non-affiliated pharmacies. This is intended to prevent potential conflicts of interest where patients are directed away from independent pharmacies, promoting competitive practices in the pharmacy sector.

Contention

Notable points of contention may arise from the pharmacy benefit managers who may argue that such regulations could undermine their operational efficiency and financial viability. There are concerns that the restrictions placed on PBMs regarding patient steering and the sharing of patient information could complicate their administrative processes and reduce incentives for collaborations that might otherwise benefit patients through tailored services.