To prohibit pharmacy benefit managers and pharmacies from being under common ownership, and for other purposes.
The bill mandates that any person or entity found in violation of the ownership ban must divest their interests in the pharmacy within three years of the act's enactment. It establishes a framework for civil actions where state attorneys general and federal authorities can seek to enforce this prohibition. Revenue obtained through sales during the violation period may be subject to disgorgement, thereby sending those funds into a community fund aimed at aiding those harmed by such anti-competitive practices. Overall, the bill intends to enhance consumer protection against potential abuses from vertically integrated pharmacy operations.
House Bill 10362, known as the Patients Before Monopolies Act of 2024, aims to prohibit pharmacy benefit managers and pharmacies from being under common ownership. This legislative action seeks to dismantle potential monopolistic practices within the pharmaceutical sector, aiming to foster a more competitive marketplace. By preventing pharmacy benefit managers, which negotiate drug prices and manage prescription benefits for insurers, from owning pharmacies, this bill addresses concerns about conflicts of interest and the potential for price manipulation that could adversely affect consumers and healthcare providers alike.
Debates surrounding HB 10362 indicate that while proponents, including advocacy groups for healthcare reform and consumer rights, laud the bill for its potential to increase competition and reduce prescription drug costs, critics argue that it may inadvertently lead to unintended consequences. Concerns about regulatory overreach and potential disruptions to existing pharmacy operations have been raised. Some stakeholders in the healthcare industry worry that stringent ownership restrictions could complicate arrangements beneficial to patient access and affordability, ultimately countering the bill's prescriptive intentions.