Texas Senate Bill SB1627

Texas 2025 - 89th Regular

• Filed: 2/25/25

Caption

Relating to patient data maintained by pharmacy benefit managers.

Impact

If enacted, SB1627 would amend the Insurance Code of Texas, introducing specific regulations that govern how pharmacy benefit managers handle patient data. By requiring that patient data is stored and processed exclusively within the United States, the bill seeks to mitigate risks associated with international data breaches and increase accountability among PBMs regarding patient information management. This could also create compliance requirements for PBMs operating within the state, potentially impacting their operational procedures.

Summary

Senate Bill 1627 addresses the security of patient data managed by pharmacy benefit managers (PBMs) in Texas. The bill proposes that these managers may not store or process patient data for residents of the state outside of the United States. This legislation is framed around the growing concerns regarding data privacy and security in the context of healthcare and pharmaceutical management, aiming to enhance the protection of sensitive patient information.

Contention

While the bill has clear intentions to safeguard patient data, there may be points of contention regarding the practicality and potential economic implications of enforcing such restrictions. Stakeholders in the pharmacy benefit management sector may argue that such regulations could limit their operational flexibility, increase costs, and ultimately affect the availability of services to patients. Furthermore, discussions could arise about what constitutes an adequate data security framework and if these provisions could lead to unintended consequences for healthcare providers and patients alike.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 4151. Third-party Administrators
  • Section: New Section