Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB173 Compare Versions

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11 2025 - 2026 LEGISLATURE
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44 2025 ASSEMBLY BILL 173
55 April 9, 2025 - Introduced by Representatives NOVAK, TRANEL, ALLEN, ARMSTRONG,
66 BROOKS, CALLAHAN, FITZGERALD, B. JACOBSON, JOERS, KIRSCH, KITCHENS,
77 KNODL, KREIBICH, MCCARVILLE, MIRESSE, MURSAU, O'CONNOR, SORTWELL,
88 TITTL, WICHGERS and TUCKER, cosponsored by Senators FELZKOWSKI,
99 MARKLEIN, CABRAL-GUEVARA, DASSLER-ALFHEIM, DRAKE, HABUSH SINYKIN,
1010 L. JOHNSON, KEYESKI, LARSON, NASS, PFAFF, QUINN, RATCLIFF, ROYS,
1111 SPREITZER, WANGGAARD, WIMBERGER and JAMES. Referred to Committee on
1212 Health, Aging and Long-Term Care.
1313
1414 ***AUTHORS SUBJECT TO CHANGE***
1515 AN ACT to repeal 632.865 (2) and 632.865 (5) (e); to renumber 632.865 (4); to
1616 amend 40.51 (8), 40.51 (8m), 66.0137 (4), 120.13 (2) (g), 185.983 (1) (intro.),
1717 609.83, 632.861 (4) (a), 632.865 (1) (ae) and 632.865 (6) (c) 3.; to create
1818 632.861 (1m), 632.861 (3g), 632.861 (3r), 632.861 (4) (e), 632.862, 632.865 (1)
1919 (ab) and (ac), 632.865 (1) (an), (aq) and (at), 632.865 (1) (bm), 632.865 (1) (cg)
2020 and (cr), 632.865 (2d), 632.865 (2h), 632.865 (2p), 632.865 (2t), 632.865 (4) (b),
2121 632.865 (4m), 632.865 (5d), 632.865 (5h), 632.865 (5p), 632.865 (5t), 632.865
2222 (6) (bm), 632.865 (6) (c) 3m., 632.865 (6g), 632.865 (6r) and 632.865 (8) of the
2323 statutes; relating to: regulation of pharmacy benefit managers, fiduciary and
2424 disclosure requirements on pharmacy benefit managers, and application of
2525 prescription drug payments to health insurance cost-sharing requirements.
2626 Analysis by the Legislative Reference Bureau
2727 This bill makes several changes to the regulation of pharmacy benefit
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4242 managers and their interactions with pharmacies and pharmacists. Under current
4343 law, pharmacy benefit managers are generally required to be licensed as a
4444 pharmacy benefit manager or an employee benefit plan administrator by the
4545 commissioner of insurance. A pharmacy benefit manager is an entity that
4646 contracts to administer or manage prescription drug benefits on behalf of an
4747 insurer, a cooperative, or another entity that provides prescription drug benefits to
4848 Wisconsin residents. Major provisions of the bill are summarized below.
4949 Pharmacy benefit manager regulation
5050 The bill requires a pharmacy benefit manager to pay a pharmacy or
5151 pharmacist a professional dispensing fee at a rate not less than is paid by the state
5252 under the Medical Assistance program for each pharmaceutical product that the
5353 pharmacy or pharmacist dispenses to an individual. The professional dispensing
5454 fee is required to be paid in addition to the amount the pharmacy benefit manager
5555 reimburses the pharmacy or pharmacist for the cost of the pharmaceutical product
5656 that the pharmacy or pharmacist dispenses. The Medical Assistance program is a
5757 joint state and federal program that provides health services to individuals who
5858 have limited financial resources.
5959 The bill prohibits a pharmacy benefit manager from assessing, charging, or
6060 collecting from a pharmacy or pharmacist any form of remuneration that passes
6161 from the pharmacy or pharmacist to the pharmacy benefit manager including
6262 claim-processing fees, performance-based fees, network-participation fees, or
6363 accreditation fees.
6464 Further, under the bill, a pharmacy benefit manager may not use any
6565 certification or accreditation requirement as a determinant of pharmacy network
6666 participation that is inconsistent with, more stringent than, or in addition to the
6767 federal requirements for licensure as a pharmacy and the requirements for
6868 licensure as a pharmacy provided under state law.
6969 The bill requires a pharmacy benefit manager to allow a participant or
7070 beneficiary of a pharmacy benefits plan or program that the pharmacy benefit
7171 manager serves to use any pharmacy or pharmacist in this state that is licensed to
7272 dispense the pharmaceutical product that the participant or beneficiary seeks to
7373 obtain if the pharmacy or pharmacist accepts the same terms and conditions that
7474 the pharmacy benefit manager establishes for at least one of the networks of
7575 pharmacies or pharmacists that the pharmacy benefit manager has established to
7676 serve individuals in the state. A pharmacy benefit manager may establish a
7777 preferred network of pharmacies or pharmacists and a nonpreferred network of
7878 pharmacies or pharmacists; however, under the bill, a pharmacy benefit manager
7979 may not prohibit a pharmacy or pharmacist from participating in either type of
8080 network provided that the pharmacy or pharmacist is licensed by this state and the
8181 federal government and accepts the same terms and conditions that the pharmacy
8282 benefit manager establishes for other pharmacies or pharmacists participating in
8383 the network that the pharmacy or pharmacist wants to join. Under the bill, a
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8888 pharmacy benefits plan or program that the pharmacy benefit manager serves a
8989 different copayment obligation or additional fee, or provide any inducement or
9090 financial incentive, for the participant or beneficiary to use a pharmacy or
9191 pharmacist in a particular network of pharmacies or pharmacists that the
9292 pharmacy benefit manager has established to serve individuals in the state.
9393 Further, the bill prohibits a pharmacy benefit manager, third-party payer, or health
9494 benefit plan from excluding a pharmacy or pharmacist from its network because the
9595 pharmacy or pharmacist serves less than a certain portion of the population of the
9696 state or serves a population living with certain health conditions.
9797 The bill provides that a pharmacy benefit manager may neither prohibit a
9898 pharmacy or pharmacist that dispenses a pharmaceutical product from, nor
9999 penalize a pharmacy or pharmacist that dispenses a pharmaceutical product for,
100100 informing an individual about the cost of the pharmaceutical product, the amount
101101 in reimbursement that the pharmacy or pharmacist receives for dispensing the
102102 pharmaceutical product, or any difference between the cost to the individual under
103103 the individual[s pharmacy benefits plan or program and the cost to the individual if
104104 the individual purchases the pharmaceutical product without making a claim for
105105 benefits under the individual[s pharmacy benefits plan or program.
106106 The bill prohibits any pharmacy benefit manager or any insurer or self-
107107 insured health plan from requiring, or penalizing a person who is covered under a
108108 health insurance policy or plan for using or for not using, a specific retail, mail-
109109 order, or other pharmacy provider within the network of pharmacy providers under
110110 the policy or plan. Prohibited penalties include an increase in premium, deductible,
111111 copayment, or coinsurance.
112112 The bill requires pharmacy benefit managers to remit payment for a claim to
113113 a pharmacy or pharmacist within 30 days from the day that the claim is submitted
114114 to the pharmacy benefit manager by the pharmacy or pharmacist.
115115 Pharmaceutical product reimbursements
116116 The bill provides that a pharmacy benefit manager that uses a maximum
117117 allowable cost list must include all of the following information on the list: 1) the
118118 average acquisition cost of each pharmaceutical product and the cost of the
119119 pharmaceutical product set forth in the national average drug acquisition cost data
120120 published by the federal centers for medicare and medicaid services; 2) the average
121121 manufacturer price of each pharmaceutical product; 3) the average wholesale price
122122 of each pharmaceutical product; 4) the brand effective rate or generic effective rate
123123 for each pharmaceutical product; 5) any applicable discount indexing; 6) the federal
124124 upper limit for each pharmaceutical product published by the federal centers for
125125 medicare and medicaid services; 7) the wholesale acquisition cost of each
126126 pharmaceutical product; and 8) any other terms that are used to establish the
127127 maximum allowable costs.
128128 The bill provides that a pharmacy benefit manager may place or continue a
129129 particular pharmaceutical product on a maximum allowable cost list only if the
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134134 nationally recognized reference as Xnot ratedY or Xnot availableY; 2) is available for
135135 purchase by all pharmacies and pharmacists in the state from national or regional
136136 pharmaceutical wholesalers operating in the state; and 3) has not been determined
137137 by the drug manufacturer to be obsolete. Further, the bill provides that any
138138 pharmacy benefit manager that uses a maximum allowable cost list must provide
139139 access to the maximum allowable cost list to each pharmacy or pharmacist subject
140140 to the maximum allowable cost list, update the maximum allowable cost list on a
141141 timely basis, provide a process for a pharmacy or pharmacist subject to the
142142 maximum allowable cost list to receive notification of an update to the maximum
143143 allowable cost list, and update the maximum allowable cost list no later than seven
144144 days after the pharmacy acquisition cost of the pharmaceutical product increases
145145 by 10 percent or more from at least 60 percent of the pharmaceutical wholesalers
146146 doing business in the state or there is a change in the methodology on which the
147147 maximum allowable cost list is based or in the value of a variable involved in the
148148 methodology. A maximum allowable cost list is a list of pharmaceutical products
149149 that sets forth the maximum amount that a pharmacy benefit manager will pay to
150150 a pharmacy or pharmacist for dispensing a pharmaceutical product. A maximum
151151 allowable cost list may directly establish maximum costs or may set forth a method
152152 for how the maximum costs are calculated.
153153 The bill further provides that a pharmacy benefit manager that uses a
154154 maximum allowable cost list must provide a process for a pharmacy or pharmacist
155155 to appeal and resolve disputes regarding claims that the maximum payment
156156 amount for a pharmaceutical product is below the pharmacy acquisition cost. A
157157 pharmacy benefit manager that receives an appeal from or on behalf of a pharmacy
158158 or pharmacist under this bill is required to resolve the appeal and notify the
159159 pharmacy or pharmacist of the pharmacy benefit manager[s determination no later
160160 than seven business days after the appeal is received. If the pharmacy benefit
161161 manager grants the relief requested in the appeal, the bill requires the pharmacy
162162 benefit manager to make the requested change in the maximum allowable cost,
163163 allow the pharmacy or pharmacist to reverse and rebill the relevant claim, provide
164164 to the pharmacy or pharmacist the national drug code number published in a
165165 directory by the federal Food and Drug Administration on which the increase or
166166 change is based, and make the change effective for each similarly situated
167167 pharmacy or pharmacist subject to the maximum allowable cost list. If the
168168 pharmacy benefit manager denies the relief requested in the appeal, the bill
169169 requires the pharmacy benefit manager to provide the pharmacy or pharmacist a
170170 reason for the denial, the national drug code number published in a directory by the
171171 FDA for the pharmaceutical product to which the claim relates, and the name of a
172172 national or regional wholesaler that has the pharmaceutical product currently in
173173 stock at a price below the amount specified in the pharmacy benefit manager[s
174174 maximum allowable cost list.
175175 The bill provides that a pharmacy benefit manager may not deny a
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180180 the maximum allowable cost for a pharmaceutical product that is not available for
181181 the pharmacy or pharmacist to purchase at a cost that is below the pharmacy
182182 acquisition cost from the pharmaceutical wholesaler from which the pharmacy or
183183 pharmacist purchases the majority of pharmaceutical products for resale. If a
184184 pharmaceutical product is not available for a pharmacy or pharmacist to purchase
185185 at a cost that is below the pharmacy acquisition cost from the pharmaceutical
186186 wholesaler from which the pharmacy or pharmacist purchases the majority of
187187 pharmaceutical products for resale, the pharmacy benefit manager must revise the
188188 maximum allowable cost list to increase the maximum allowable cost for the
189189 pharmaceutical product to an amount equal to or greater than the pharmacy[s or
190190 pharmacist[s pharmacy acquisition cost and allow the pharmacy or pharmacist to
191191 reverse and rebill each claim affected by the pharmacy[s or pharmacist[s inability to
192192 procure the pharmaceutical product at a cost that is equal to or less than the
193193 maximum allowable cost that was the subject of the pharmacy[s or pharmacist[s
194194 appeal.
195195 The bill prohibits a pharmacy benefit manager from reimbursing a pharmacy
196196 or pharmacist in the state an amount less than the amount that the pharmacy
197197 benefit manager reimburses a pharmacy benefit manager affiliate for providing the
198198 same pharmaceutical product. Under the bill, a pharmacy benefit manager
199199 affiliate is a pharmacy or pharmacist that is an affiliate of a pharmacy benefit
200200 manager.
201201 Finally, the bill allows a pharmacy or pharmacist to decline to provide a
202202 pharmaceutical product to an individual or pharmacy benefit manager if, as a
203203 result of a maximum allowable cost list, the pharmacy or pharmacist would be paid
204204 less than the pharmacy acquisition cost of the pharmacy or pharmacist providing
205205 the pharmaceutical product.
206206 Drug formularies
207207 This bill makes several changes with respect to drug formularies. Under
208208 current law, a disability insurance policy that offers a prescription drug benefit, a
209209 self-insured health plan that offers a prescription drug benefit, or a pharmacy
210210 benefit manager acting on behalf of a disability insurance policy or self-insured
211211 health plan must provide to an enrollee advanced written notice of a formulary
212212 change that removes a prescription drug from the formulary of the policy or plan or
213213 that reassigns a prescription drug to a benefit tier for the policy or plan that has a
214214 higher deductible, copayment, or coinsurance. The advanced written notice of a
215215 formulary change must be provided no fewer than 30 days before the expected date
216216 of the removal or reassignment.
217217 This bill provides that a disability insurance policy or self-insured health plan
218218 that provides a prescription drug benefit shall make the formulary and all drug
219219 costs associated with the formulary available to plan sponsors and individuals prior
220220 to selection or enrollment. Further, the bill provides that no disability insurance
221221 policy, self-insured health plan, or pharmacy benefit manager acting on behalf of a
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226226 drug from the formulary except at the time of coverage renewal. Finally, the bill
227227 provides that advanced written notice of a formulary change must be provided no
228228 fewer than 90 days before the expected date of the removal or reassignment of a
229229 prescription drug on the formulary.
230230 Pharmacy networks
231231 Under the bill, if an enrollee utilizes a pharmacy or pharmacist in a preferred
232232 network of pharmacies or pharmacists, no disability insurance policy or self-
233233 insured health plan that provides a prescription drug benefit or pharmacy benefit
234234 manager that provides services under a contract with a policy or plan may require
235235 the enrollee to pay any amount or impose on the enrollee any condition that would
236236 not be required if the enrollee utilized a different pharmacy or pharmacist in the
237237 same preferred network. Further, the bill provides that any disability insurance
238238 policy or self-insured health plan that provides a prescription drug benefit, or any
239239 pharmacy benefit manager that provides services under a contract with a policy or
240240 plan, that has established a preferred network of pharmacies or pharmacists must
241241 reimburse each pharmacy or pharmacist in the same network at the same rates.
242242 Audits of pharmacists and pharmacies
243243 This bill makes several changes to audits of pharmacists and pharmacies. The
244244 bill requires an entity that conducts audits of pharmacists and pharmacies to
245245 ensure that each pharmacist or pharmacy audited by the entity is audited under
246246 the same standards and parameters as other similarly situated pharmacists or
247247 pharmacies audited by the entity, that the entity randomizes the prescriptions that
248248 the entity audits and the entity audits the same number of prescriptions in each
249249 prescription benefit tier, and that each audit of a prescription reimbursed under
250250 Part D of the federal Medicare program is conducted separately from audits of
251251 prescriptions reimbursed under other policies or plans. The bill prohibits any
252252 pharmacy benefit manager from recouping reimbursements made to a pharmacist
253253 or pharmacy for errors that involve no actual financial harm to an enrollee or a
254254 policy or plan sponsor unless the error is the result of the pharmacist or pharmacy
255255 failing to comply with a formal corrective action plan. The bill further prohibits any
256256 pharmacy benefit manager from using extrapolation in calculating reimbursements
257257 that it may recoup, and instead requires a pharmacy benefit manager to base the
258258 finding of errors for which reimbursements will be recouped on an actual error in
259259 reimbursement and not a projection of the number of patients served having a
260260 similar diagnosis or on a projection of the number of similar orders or refills for
261261 similar prescription drugs. The bill provides that a pharmacy benefit manager that
262262 recoups any reimbursements made to a pharmacist or pharmacy for an error that
263263 was the cause of financial harm must return the recouped reimbursement to the
264264 enrollee or the policy or plan sponsor who was harmed by the error.
265265 Pharmacy benefit manager fiduciary and disclosure requirements
266266 The bill provides that a pharmacy benefit manager owes a fiduciary duty to a
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271271 manager annually disclose all of the following information to the health benefit
272272 plan sponsor:
273273 1. The indirect profit received by the pharmacy benefit manager from owning
274274 a pharmacy or health service provider.
275275 2. Any payments made to a consultant or broker who works on behalf of the
276276 plan sponsor.
277277 3. From the amounts received from drug manufacturers, the amounts
278278 retained by the pharmacy benefit manager that are related to the plan sponsor[s
279279 claims or bona fide service fees.
280280 4. The amounts received from network pharmacies and pharmacists and the
281281 amount retained by the pharmacy benefit manager.
282282 Discriminatory reimbursement of 340B entities
283283 The bill prohibits a pharmacy benefit manager from taking certain actions
284284 with respect to 340B covered entities, pharmacies and pharmacists contracted with
285285 340B covered entities, and patients who obtain prescription drugs from 340B
286286 covered entities. The 340B drug pricing program is a federal program that requires
287287 pharmaceutical manufacturers that participate in the federal Medicaid program to
288288 sell outpatient drugs at discounted prices to certain health care organizations that
289289 provide health care for uninsured and low-income patients. Entities that are
290290 eligible for discounted prices under the 340B drug pricing program include
291291 federally qualified health centers, critical access hospitals, and certain public and
292292 nonprofit disproportionate share hospitals. The bill prohibits pharmacy benefit
293293 managers from doing any of the following:
294294 1. Refusing to reimburse a 340B covered entity or a pharmacy or pharmacist
295295 contracted with a 340B covered entity for dispensing 340B drugs.
296296 2. Imposing requirements or restrictions on 340B covered entities or
297297 pharmacies or pharmacists contracted with 340B covered entities that are not
298298 imposed on other entities, pharmacies, or pharmacists.
299299 3. Reimbursing a 340B covered entity or a pharmacy or pharmacist
300300 contracted with a 340B covered entity for a 340B drug at a rate lower than the
301301 amount paid for the same drug to pharmacies or pharmacists that are not 340B
302302 covered entities or pharmacies or pharmacists contracted with a 340B covered
303303 entity.
304304 4. Assessing a fee, charge back, or other adjustment against a 340B covered
305305 entity or a pharmacy or pharmacist contracted with a 340B covered entity after a
306306 claim has been paid or adjudicated.
307307 5. Restricting the access of a 340B covered entity or a pharmacy or
308308 pharmacist contracted with a 340B covered entity to a third-party payer[s
309309 pharmacy network solely because the 340B covered entity or the pharmacy or
310310 pharmacist contracted with a 340B covered entity participates in the 340B drug
311311 pricing program.
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316316 with a 340B covered entity to contract with a specific pharmacy or pharmacist or
317317 health benefit plan in order to access a third-party payer[s pharmacy network.
318318 7. Imposing a restriction or an additional charge on a patient who obtains a
319319 340B drug from a 340B covered entity or a pharmacy or pharmacist contracted with
320320 a 340B covered entity.
321321 8. Restricting the methods by which a 340B covered entity or a pharmacy or
322322 pharmacist contracted with a 340B covered entity may dispense or deliver 340B
323323 drugs.
324324 9. Requiring a 340B covered entity or a pharmacy or pharmacist contracted
325325 with a 340B covered entity to share pharmacy bills or invoices with a pharmacy
326326 benefit manager, a third-party payer, or a health benefit plan.
327327 Application of prescription drug payments
328328 Health insurance policies and plans often apply cost-sharing requirements
329329 and out-of-pocket maximum amounts to the benefits covered by the policy or plan.
330330 A cost-sharing requirement is a share of covered benefits that an insured is
331331 required to pay under a health insurance policy or plan. Cost-sharing requirements
332332 include copayments, deductibles, and coinsurance. An out-of-pocket maximum
333333 amount is a limit specified by a policy or plan on the amount that an insured pays,
334334 and, once that limit is reached, the policy or plan covers the benefit entirely. The
335335 bill generally requires health insurance policies that offer prescription drug
336336 benefits, self-insured health plans, and pharmacy benefit managers acting on
337337 behalf of policies or plans to apply amounts paid by or on behalf of an individual
338338 covered under the policy or plan for brand name prescription drugs to any cost-
339339 sharing requirement or to any calculation of an out-of-pocket maximum amount of
340340 the policy or plan. Health insurance policies are referred to in the bill as disability
341341 insurance policies.
342342 Prohibited retaliation
343343 The bill prohibits a pharmacy benefit manager from retaliating against a
344344 pharmacy or pharmacist for reporting an alleged violation of certain laws
345345 applicable to pharmacy benefit managers or for exercising certain rights or
346346 remedies. Retaliation includes terminating or refusing to renew a contract with a
347347 pharmacy or pharmacist, subjecting a pharmacy or pharmacist to increased audits,
348348 or failing to promptly pay a pharmacy or pharmacist any money that the pharmacy
349349 benefit manager owes to the pharmacy or pharmacist. The bill provides that a
350350 pharmacy or pharmacist may bring an action in court for injunctive relief if a
351351 pharmacy benefit manager is retaliating against the pharmacy or pharmacist as
352352 provided in the bill. In addition to equitable relief, the court may award a pharmacy
353353 or pharmacist that prevails in such an action reasonable attorney fees and costs.
354354 For further information see the state fiscal estimate, which will be printed as
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359359 SECTION 1
360360 The people of the state of Wisconsin, represented in senate and assembly, do
361361 enact as follows:
362362 SECTION 1. 40.51 (8) of the statutes is amended to read:
363363 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
364364 shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.722,
365365 632.729, 632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835,
366366 632.85, 632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (3) to (6), 632.885,
367367 632.89, 632.895 (5m) and (8) to (17), and 632.896.
368368 SECTION 2. 40.51 (8m) of the statutes is amended to read:
369369 40.51 (8m) Every health care coverage plan offered by the group insurance
370370 board under sub. (7) shall comply with ss. 631.95, 632.722, 632.729, 632.746 (1) to
371371 (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855,
372372 632.861, 632.862, 632.867, 632.885, 632.89, and 632.895 (11) to (17).
373373 SECTION 3. 66.0137 (4) of the statutes is amended to read:
374374 66.0137 (4) SELF-INSURED HEALTH PLANS. If a city, including a 1st class city,
375375 or a village provides health care benefits under its home rule power, or if a town
376376 provides health care benefits, to its officers and employees on a self-insured basis,
377377 the self-insured plan shall comply with ss. 49.493 (3) (d), 631.89, 631.90, 631.93 (2),
378378 632.722, 632.729, 632.746 (10) (a) 2. and (b) 2., 632.747 (3), 632.798, 632.85,
379379 632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (4) to (6), 632.885, 632.89,
380380 632.895 (9) to (17), 632.896, and 767.513 (4).
381381 SECTION 4. 120.13 (2) (g) of the statutes is amended to read:
382382 120.13 (2) (g) Every self-insured plan under par. (b) shall comply with ss.
383383 49.493 (3) (d), 631.89, 631.90, 631.93 (2), 632.722, 632.729, 632.746 (10) (a) 2. and
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409409 SECTION 4
410410 (b) 2., 632.747 (3), 632.798, 632.85, 632.853, 632.855, 632.861, 632.862, 632.867,
411411 632.87 (4) to (6), 632.885, 632.89, 632.895 (9) to (17), 632.896, and 767.513 (4).
412412 SECTION 5. 185.983 (1) (intro.) of the statutes is amended to read:
413413 185.983 (1) (intro.) Every voluntary nonprofit health care plan operated by a
414414 cooperative association organized under s. 185.981 shall be exempt from chs. 600 to
415415 646, with the exception of ss. 601.04, 601.13, 601.31, 601.41, 601.42, 601.43, 601.44,
416416 601.45, 611.26, 611.67, 619.04, 623.11, 623.12, 628.34 (10), 631.17, 631.89, 631.93,
417417 631.95, 632.72 (2), 632.722, 632.729, 632.745 to 632.749, 632.775, 632.79, 632.795,
418418 632.798, 632.85, 632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (2) to (6),
419419 632.885, 632.89, 632.895 (5) and (8) to (17), 632.896, and 632.897 (10) and chs. 609,
420420 620, 630, 635, 645, and 646, but the sponsoring association shall:
421421 SECTION 6. 609.83 of the statutes is amended to read:
422422 609.83 Coverage of drugs and devices; application of payments.
423423 Limited service health organizations, preferred provider plans, and defined
424424 network plans are subject to ss. 632.853, 632.861, 632.862, and 632.895 (16t) and
425425 (16v).
426426 SECTION 7. 632.861 (1m) of the statutes is created to read:
427427 632.861 (1m) REQUIRED DISCLOSURES. A disability insurance policy or self-
428428 insured health plan that provides a prescription drug benefit shall make the
429429 formulary and all drug costs associated with the formulary available to plan
430430 sponsors and individuals prior to selection or enrollment.
431431 SECTION 8. 632.861 (3g) of the statutes is created to read:
432432 632.861 (3g) CHOICE OF PROVIDER; PENALTY PROHIBITED. No insurer, self-
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459459 SECTION 8
460460 insured health plan, or pharmacy benefit manager may require, or penalize a
461461 person who is covered under a disability insurance policy or self-insured health
462462 plan for using or for not using, a specific retail, specific mail-order, or other specific
463463 pharmacy provider within the network of pharmacy providers under the policy or
464464 plan. A prohibited penalty under this subsection includes an increase in premium,
465465 deductible, copayment, or coinsurance.
466466 SECTION 9. 632.861 (3r) of the statutes is created to read:
467467 632.861 (3r) PHARMACY NETWORKS. (a) If an enrollee utilizes a pharmacy or
468468 pharmacist in a preferred network of pharmacies or pharmacists, no disability
469469 insurance policy or self-insured health plan that provides a prescription drug
470470 benefit or pharmacy benefit manager that provides services under a contract with
471471 a policy or plan may require the enrollee to pay any amount or impose on the
472472 enrollee any condition that would not be required if the enrollee utilized a different
473473 pharmacy or pharmacist in the same preferred network.
474474 (b) Any disability insurance policy or self-insured health plan that provides a
475475 prescription drug benefit, or any pharmacy benefit manager that provides services
476476 under a contract with a policy or plan, that has established a preferred network of
477477 pharmacies or pharmacists shall reimburse each pharmacy or pharmacist in the
478478 same network at the same rates.
479479 SECTION 10. 632.861 (4) (a) of the statutes is amended to read:
480480 632.861 (4) (a) Except as provided in par. (b) and subject to par. (e), a
481481 disability insurance policy that offers a prescription drug benefit, a self-insured
482482 health plan that offers a prescription drug benefit, or a pharmacy benefit manager
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509509 SECTION 10
510510 acting on behalf of a disability insurance policy or self-insured health plan shall
511511 provide to an enrollee advanced written notice of a formulary change that removes
512512 a prescription drug from the formulary of the policy or plan or that reassigns a
513513 prescription drug to a benefit tier for the policy or plan that has a higher deductible,
514514 copayment, or coinsurance. The advanced written notice of a formulary change
515515 under this paragraph shall be provided no fewer than 30 90 days before the
516516 expected date of the removal or reassignment and shall include information on the
517517 procedure for the enrollee to request an exception to the formulary change. The
518518 policy, plan, or pharmacy benefit manager is required to provide the advanced
519519 written notice under this paragraph only to those enrollees in the policy or plan
520520 who are using the drug at the time the notification must be sent according to
521521 available claims history.
522522 SECTION 11. 632.861 (4) (e) of the statutes is created to read:
523523 632.861 (4) (e) No disability insurance policy, self-insured health plan, or
524524 pharmacy benefit manager acting on behalf of a disability insurance policy or self-
525525 insured health plan may remove a prescription drug from the formulary except at
526526 the time of coverage renewal.
527527 SECTION 12. 632.862 of the statutes is created to read:
528528 632.862 Application of prescription drug payments. (1) DEFINITIONS.
529529 In this section:
530530 (a) XBrand nameY has the meaning given in s. 450.12 (1) (a).
531531 (b) XBrand name drugY means any of the following:
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557557 SECTION 12
558558 1. A prescription drug that contains a brand name and that has no medically
559559 appropriate generic equivalent.
560560 2. A prescription drug that contains a brand name and that has a medically
561561 appropriate generic equivalent but to which the enrollee or other covered individual
562562 has obtained access through any of the following:
563563 a. Prior authorization.
564564 b. A step therapy protocol.
565565 c. The exceptions and appeals process of the disability insurance policy, self-
566566 insured health plan, or pharmacy benefit manager.
567567 (c) XCost-sharing requirementY means a deductible, copayment, or
568568 coinsurance.
569569 (d) XDisability insurance policyY has the meaning given in s. 632.895 (1) (a).
570570 (e) XGeneric equivalentY means a drug product equivalent, as defined in s.
571571 450.13 (1e), that is nationally available.
572572 (f) XPharmacy benefit managerY has the meaning given in s. 632.865 (1) (c).
573573 (g) XSelf-insured health planY has the meaning given in s. 632.85 (1) (c).
574574 (2) APPLICATION OF PAYMENTS. Except as provided in sub. (4), a disability
575575 insurance policy that offers a prescription drug benefit, a self-insured health plan,
576576 or a pharmacy benefit manager acting on behalf of a disability insurance policy or
577577 self-insured health plan shall apply to any cost-sharing requirement or to any
578578 calculation of an out-of-pocket maximum amount of the disability insurance policy
579579 or self-insured health plan, including the annual limitations on cost sharing
580580 established under 42 USC 18022 (c) and 42 USC 300gg-6 (b), any amounts paid by
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607607 SECTION 12
608608 an enrollee or other individual covered under the disability insurance policy or self-
609609 insured health plan, or by any person on behalf of the enrollee or individual, for
610610 brand name drugs that are covered under the disability insurance policy or self-
611611 insured health plan.
612612 (3) CALCULATION OF COST-SHARING ANNUAL LIMITATIONS. For purposes of
613613 calculating an enrollee[s contribution to the annual limitations on cost sharing
614614 under 42 USC 18022 (c) and 42 USC 300gg-6 (b), a disability insurance policy that
615615 offers a prescription drug benefit, a self-insured health plan, or a pharmacy benefit
616616 manager acting on behalf of a disability insurance policy or self-insured health plan
617617 shall include expenditures for any item or service covered under the disability
618618 insurance policy or self-insured health plan if the item or service is included within
619619 a category of essential health benefits, as described in 42 USC 18022 (b) (1), and
620620 regardless of whether the disability insurance policy, self-insured health plan, or
621621 pharmacy benefit manager classifies the item or service as an essential health
622622 benefit.
623623 (4) EXCEPTION; HIGH DEDUCTIBLE HEALTH PLANS. If applying the requirement
624624 under sub. (2) to payments made by or on behalf of an enrollee or other individual
625625 covered under a high deductible health plan, as defined under 26 USC 223 (c) (2),
626626 would result in the enrollee failing to meet the definition of an eligible individual
627627 under 26 USC 223 (c) (1), the disability insurance policy, self-insured health plan,
628628 or pharmacy benefit manager shall begin applying the requirement under sub. (2)
629629 to the disability insurance policy or self-insured health plan[s deductible after the
630630 enrollee has satisfied the minimum deductible requirement under 26 USC 223 (c)
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657657 SECTION 12
658658 (2) (A) (i). This subsection does not apply to any amounts paid for items or services
659659 that are preventive care, as described in 26 USC 223 (c) (2) (C).
660660 SECTION 13. 632.865 (1) (ab) and (ac) of the statutes are created to read:
661661 632.865 (1) (ab) X340B covered entityY has the meaning given for Xcovered
662662 entityY under 42 USC 256b (a) (4).
663663 (ac) X340B drugY has the meaning given for Xcovered drugY under 42 USC
664664 256b (b) (2).
665665 SECTION 14. 632.865 (1) (ae) of the statutes is amended to read:
666666 632.865 (1) (ae) XHealth benefit planY has the meaning given means a health
667667 benefit plan, as defined in s. 632.745 (11), that is not prescription drug coverage
668668 provided under part D of medicare under Title XVIII of the federal Social Security
669669 Act, 42 USC 1395 to 1395lll.
670670 SECTION 15. 632.865 (1) (an), (aq) and (at) of the statutes are created to read:
671671 632.865 (1) (an) XMaximum allowable cost listY means a list of
672672 pharmaceutical products that sets forth the maximum amount a pharmacy benefit
673673 manager will pay to a pharmacy or pharmacist for dispensing a pharmaceutical
674674 product. The list may directly establish the maximum amounts or set forth a
675675 method for how the maximum amounts are calculated.
676676 (aq) XPharmaceutical productY means a prescription generic drug,
677677 prescription brand-name drug, prescription biologic, or other prescription drug,
678678 vaccine, or device.
679679 (at) XPharmaceutical wholesalerY means a person that sells and distributes,
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705705 SECTION 15
706706 directly or indirectly, a pharmaceutical product and that offers to deliver the
707707 pharmaceutical product to a pharmacy or pharmacist.
708708 SECTION 16. 632.865 (1) (bm) of the statutes is created to read:
709709 632.865 (1) (bm) XPharmacy acquisition costY means the amount that a
710710 pharmaceutical wholesaler charges a pharmacy or pharmacist for a
711711 pharmaceutical product as listed on the pharmacy[s or pharmacist[s billing invoice.
712712 SECTION 17. 632.865 (1) (cg) and (cr) of the statutes are created to read:
713713 632.865 (1) (cg) XPharmacy benefit manager affiliateY means a pharmacy or
714714 pharmacist that is an affiliate of a pharmacy benefit manager.
715715 (cr) XPharmacy services administrative organizationY means an entity that
716716 provides contracting and other administrative services to pharmacies or
717717 pharmacists to assist them in their interactions with 3rd-party payers, pharmacy
718718 benefit managers, pharmaceutical wholesalers, and other entities.
719719 SECTION 18. 632.865 (2) of the statutes is repealed.
720720 SECTION 19. 632.865 (2d) of the statutes is created to read:
721721 632.865 (2d) PHARMACEUTICAL PRODUCT REIMBURSEMENTS . (ag) Contents of
722722 maximum allowable cost lists. A pharmacy benefit manager that uses a maximum
723723 allowable cost list shall include all of the following information on the maximum
724724 allowable cost list:
725725 1. The average acquisition cost of each pharmaceutical product and the cost of
726726 the pharmaceutical product set forth in the national average drug acquisition cost
727727 data published by the federal centers for medicare and medicaid services.
728728 2. The average manufacturer price of each pharmaceutical product.
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755755 SECTION 19
756756 3. The average wholesale price of each pharmaceutical product.
757757 4. The brand effective rate or generic effective rate for each pharmaceutical
758758 product.
759759 5. Any applicable discount indexing.
760760 6. The federal upper limit for each pharmaceutical product published by the
761761 federal centers for medicare and medicaid services.
762762 7. The wholesale acquisition cost of each pharmaceutical product.
763763 8. Any other terms that are used to establish the maximum allowable costs.
764764 (ar) Regulation of maximum allowable cost lists. A pharmacy benefit
765765 manager may place or continue a particular pharmaceutical product on a
766766 maximum allowable cost list only if all of the following apply to the pharmaceutical
767767 product:
768768 1. The pharmaceutical product is listed as a drug product equivalent, as
769769 defined in s. 450.13 (1e), or is rated by a nationally recognized reference, such as
770770 Medi-Span or Gold Standard Drug Database, as Xnot ratedY or Xnot available.Y
771771 2. The pharmaceutical product is available for purchase by all pharmacies
772772 and pharmacists in this state from national or regional pharmaceutical wholesalers
773773 operating in this state.
774774 3. The pharmaceutical product has not been determined by the drug
775775 manufacturer to be obsolete.
776776 (b) Access and update obligations. A pharmacy benefit manager that uses a
777777 maximum allowable cost list shall do all of the following:
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803803 SECTION 19
804804 1. Provide access to the maximum allowable cost list to each pharmacy or
805805 pharmacist subject to the maximum allowable cost list.
806806 2. Update the maximum allowable cost list on a timely basis.
807807 3. Update the maximum allowable cost list no later than 7 days after any of
808808 the following occurs:
809809 a. The pharmacy acquisition cost of a pharmaceutical product increases by 10
810810 percent or more from at least 60 percent of the pharmaceutical wholesalers doing
811811 business in this state.
812812 b. There is a change in the methodology on which the maximum allowable
813813 cost list is based or in the value of a variable involved in the methodology.
814814 4. Provide a process for a pharmacy or pharmacist subject to the maximum
815815 allowable cost list to receive prompt notification of an update to the maximum
816816 allowable cost list.
817817 (c) Appeal process. 1. A pharmacy benefit manager that uses a maximum
818818 allowable cost list shall provide a process for a pharmacy or pharmacist to appeal
819819 and resolve disputes regarding claims that the maximum payment amount for a
820820 pharmaceutical product is below the pharmacy acquisition cost.
821821 2. A pharmacy benefit manager required to provide an appeal process under
822822 subd. 1. shall do all of the following:
823823 a. Provide a dedicated telephone number and email address or website that a
824824 pharmacy or pharmacist may use to submit an appeal.
825825 b. Allow a pharmacy or pharmacist to submit an appeal directly on the
826826 pharmacy[s or pharmacist[s own behalf.
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853853 SECTION 19
854854 c. Allow a pharmacy services administrative organization to submit an appeal
855855 on behalf of a pharmacy or pharmacist.
856856 d. Provide at least 7 business days after a customer transaction for a
857857 pharmacy or pharmacist to submit an appeal under this paragraph concerning a
858858 pharmaceutical product involved in the transaction.
859859 3. A pharmacy benefit manager that receives an appeal from or on behalf of a
860860 pharmacy or pharmacist under this paragraph shall resolve the appeal and notify
861861 the pharmacy or pharmacist of the pharmacy benefit manager[s determination no
862862 later than 7 business days after the appeal is received by doing any of the following:
863863 a. If the pharmacy benefit manager grants the relief requested in the appeal,
864864 the pharmacy benefit manager shall make the requested change in the maximum
865865 allowable cost; allow the pharmacy or pharmacist to reverse and rebill the relevant
866866 claim; provide to the pharmacy or pharmacist the national drug code number
867867 published in a directory by the federal food and drug administration on which the
868868 increase or change is based; and make the change effective for each similarly
869869 situated pharmacy or pharmacist subject to the maximum allowable cost list.
870870 b. If the pharmacy benefit manager denies the relief requested in the appeal,
871871 the pharmacy benefit manager shall provide to the pharmacy or pharmacist a
872872 reason for the denial, the national drug code number published in a directory by the
873873 federal food and drug administration for the pharmaceutical product to which the
874874 claim relates, and the name of a national or regional pharmaceutical wholesaler
875875 operating in this state that has the pharmaceutical product currently in stock at a
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901901 SECTION 19
902902 price below the amount specified in the pharmacy benefit manager[s maximum
903903 allowable cost list.
904904 4. Notwithstanding subd. 3. b., a pharmacy benefit manager may not deny a
905905 pharmacy[s or pharmacist[s appeal under this paragraph if the relief requested in
906906 the appeal relates to the maximum allowable cost for a pharmaceutical product that
907907 is not available for the pharmacy or pharmacist to purchase at a cost that is below
908908 the pharmacy acquisition cost from the pharmaceutical wholesaler from which the
909909 pharmacy or pharmacist purchases the majority of pharmaceutical products for
910910 resale. If this subdivision applies, the pharmacy benefit manager shall revise the
911911 maximum allowable cost list to increase the maximum allowable cost for the
912912 pharmaceutical product to an amount equal to or greater than the pharmacy[s or
913913 pharmacist[s pharmacy acquisition cost and allow the pharmacy or pharmacist to
914914 reverse and rebill each claim affected by the pharmacy[s or pharmacist[s inability to
915915 procure the pharmaceutical product at a cost that is equal to or less than the
916916 maximum allowable cost that was the subject of the pharmacy[s or pharmacist[s
917917 appeal.
918918 (d) Affiliated reimbursements. A pharmacy benefit manager may not
919919 reimburse a pharmacy or pharmacist in this state an amount less than the amount
920920 that the pharmacy benefit manager reimburses a pharmacy benefit manager
921921 affiliate for providing the same pharmaceutical product. The reimbursement
922922 amount shall be calculated on a per unit basis based on the same generic product
923923 identifier or generic code number, if applicable.
924924 (e) Declining to dispense. A pharmacy or pharmacist may decline to provide a
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951951 SECTION 19
952952 pharmaceutical product to an individual or pharmacy benefit manager if, as a
953953 result of the applicable maximum allowable cost list, the pharmacy or pharmacist
954954 would be paid less than the pharmacy acquisition cost of the pharmacy or
955955 pharmacist providing the pharmaceutical product.
956956 SECTION 20. 632.865 (2h) of the statutes is created to read:
957957 632.865 (2h) PROFESSIONAL DISPENSING FEES. A pharmacy benefit manager
958958 shall pay a pharmacy or pharmacist a professional dispensing fee at a rate not less
959959 than is paid by this state under the medical assistance program under subch. IV of
960960 ch. 49 for each pharmaceutical product that the pharmacy or pharmacist dispenses
961961 to an individual. The fee shall be calculated on a per unit basis based on the same
962962 generic product identifier or generic code number, if applicable. The pharmacy
963963 benefit manager shall pay the professional dispensing fee in addition to the amount
964964 the pharmacy benefit manager reimburses the pharmacy or pharmacist for the cost
965965 of the pharmaceutical product that the pharmacy or pharmacist dispenses to the
966966 individual.
967967 SECTION 21. 632.865 (2p) of the statutes is created to read:
968968 632.865 (2p) PHARMACY BENEFIT MANAGER-IMPOSED FEES PROHIBITED. A
969969 pharmacy benefit manager may not assess, charge, or collect any form of
970970 remuneration that passes from a pharmacy or pharmacist to the pharmacy benefit
971971 manager, including claim-processing fees, performance-based fees, network-
972972 participation fees, or accreditation fees.
973973 SECTION 22. 632.865 (2t) of the statutes is created to read:
974974 632.865 (2t) FIDUCIARY DUTY AND DISCLOSURES TO HEALTH BENEFIT PLAN
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10011001 SECTION 22
10021002 SPONSORS. (a) A pharmacy benefit manager owes a fiduciary duty to the health
10031003 benefit plan sponsor to act according to the health benefit plan sponsor[s
10041004 instructions and in the best interests of the health benefit plan sponsor.
10051005 (b) A pharmacy benefit manager shall annually provide the health benefit
10061006 plan sponsor with all of the following information from the previous calendar year:
10071007 1. The indirect profit received by the pharmacy benefit manager from owning
10081008 any interest in a pharmacy or health service provider.
10091009 2. Any payment made by the pharmacy benefit manager to a consultant or
10101010 broker who works on behalf of the health benefit plan sponsor.
10111011 3. From the amounts received from all drug manufacturers, the amounts
10121012 retained by the pharmacy benefit manager, and not passed through to the health
10131013 benefit plan sponsor, that are related to the health benefit plan sponsor[s claims or
10141014 bona fide service fees.
10151015 4. The amounts, including pharmacy access and audit recovery fees, received
10161016 from all pharmacies and pharmacists that are in the pharmacy benefit manager[s
10171017 network or have a contract to be in the network and, from these amounts, the
10181018 amount retained by the pharmacy benefit manager and not passed through to the
10191019 health benefit plan sponsor.
10201020 SECTION 23. 632.865 (4) of the statutes is renumbered 632.865 (4) (a).
10211021 SECTION 24. 632.865 (4) (b) of the statutes is created to read:
10221022 632.865 (4) (b) A pharmacy benefit manager may not use any certification or
10231023 accreditation requirement as a determinant of pharmacy network participation
10241024 that is inconsistent with, more stringent than, or in addition to the federal
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10511051 SECTION 24
10521052 requirements for licensure as a pharmacy and the requirements for licensure as a
10531053 pharmacy under s. 450.06 or 450.065.
10541054 SECTION 25. 632.865 (4m) of the statutes is created to read:
10551055 632.865 (4m) PROMPT PAYMENT REQUIRED. A pharmacy benefit manager
10561056 shall remit payment for a claim to a pharmacy or pharmacist within 30 days from
10571057 the day that the claim is submitted to the pharmacy benefit manager by the
10581058 pharmacy or pharmacist.
10591059 SECTION 26. 632.865 (5) (e) of the statutes is repealed.
10601060 SECTION 27. 632.865 (5d) of the statutes is created to read:
10611061 632.865 (5d) DISCRIMINATORY REIMBURSEMENT PROHIBITED. (a) In this
10621062 subsection, X3rd-party payerY means an entity, other than a patient or health care
10631063 provider, that reimburses for and manages health care expenses.
10641064 (b) A pharmacy benefit manager may not do any of the following:
10651065 1. Refuse to reimburse a 340B covered entity or a pharmacy or pharmacist
10661066 contracted with a 340B covered entity for dispensing 340B drugs.
10671067 2. Impose requirements or restrictions on 340B covered entities or
10681068 pharmacies or pharmacists contracted with 340B covered entities that are not
10691069 imposed on other entities, pharmacies, or pharmacists.
10701070 3. Reimburse a 340B covered entity or a pharmacy or pharmacist contracted
10711071 with a 340B covered entity for a 340B drug at a rate lower than the amount paid for
10721072 the same drug to pharmacies or pharmacists that are not 340B covered entities or
10731073 pharmacies or pharmacists contracted with a 340B covered entity.
10741074 4. Assess a fee, charge back, or other adjustment against a 340B covered
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11011101 SECTION 27
11021102 entity or a pharmacy or pharmacist contracted with a 340B covered entity after a
11031103 claim has been paid or adjudicated.
11041104 5. Restrict the access of a 340B covered entity or a pharmacy or pharmacist
11051105 contracted with a 340B covered entity to a 3rd-party payer[s pharmacy network
11061106 solely because the 340B covered entity or the pharmacy or pharmacist contracted
11071107 with a 340B covered entity participates in the 340B drug pricing program under 42
11081108 USC 256b.
11091109 6. Require a 340B covered entity or a pharmacy or pharmacist contracted
11101110 with a 340B covered entity to contract with a specific pharmacy or pharmacist or
11111111 health benefit plan in order to access a 3rd-party payer[s pharmacy network.
11121112 7. Impose a restriction or an additional charge on a patient who obtains a
11131113 340B drug from a 340B covered entity or a pharmacy or pharmacist contracted with
11141114 a 340B covered entity.
11151115 8. Restrict the methods by which a 340B covered entity or a pharmacy or
11161116 pharmacist contracted with a 340B covered entity may dispense or deliver 340B
11171117 drugs.
11181118 9. Require a 340B covered entity or a pharmacy or pharmacist contracted
11191119 with a 340B covered entity to share pharmacy bills or invoices with a pharmacy
11201120 benefit manager, a 3rd-party payer, or a health benefit plan.
11211121 SECTION 28. 632.865 (5h) of the statutes is created to read:
11221122 632.865 (5h) REGULATION OF PHARMACY NETWORKS AND INDIVIDUAL CHOICE.
11231123 All of the following apply to a pharmacy benefit manager that sells access to
11241124 networks of pharmacies or pharmacists that operate in this state:
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11511151 SECTION 28
11521152 (a) The pharmacy benefit manager shall allow a participant or beneficiary of
11531153 a pharmacy benefits plan or program that the pharmacy benefit manager serves to
11541154 use any pharmacy or pharmacist in this state that is licensed to dispense the
11551155 pharmaceutical product that the participant or beneficiary seeks to obtain,
11561156 provided that the pharmacy or pharmacist accepts the same terms and conditions
11571157 that the pharmacy benefit manager has established for at least one of the networks
11581158 of pharmacies or pharmacists the pharmacy benefit manager has established to
11591159 serve individuals in this state.
11601160 (b) The pharmacy benefit manager may establish a preferred network of
11611161 pharmacies or pharmacists and a nonpreferred network of pharmacies or
11621162 pharmacists, but the pharmacy benefit manager may not prohibit a pharmacy or
11631163 pharmacist from participating in either type of network in this state, provided that
11641164 the pharmacy or pharmacist is licensed by this state and the federal government
11651165 and accepts the same terms and conditions that the pharmacy benefit manager has
11661166 established for other pharmacies or pharmacists participating in the network that
11671167 the pharmacy or pharmacist wants to join.
11681168 (c) The pharmacy benefit manager may not charge a participant or
11691169 beneficiary of a pharmacy benefits plan or program that the pharmacy benefit
11701170 manager serves a different copayment obligation or additional fee, or provide any
11711171 inducement or financial incentive, for the participant or beneficiary to use a
11721172 pharmacy or pharmacist in a particular network of pharmacies or pharmacists the
11731173 pharmacy benefit manager has established to serve individuals in this state.
11741174 SECTION 29. 632.865 (5p) of the statutes is created to read:
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12011201 SECTION 29
12021202 632.865 (5p) GAG CLAUSES PROHIBITED. A pharmacy benefit manager may
12031203 not prohibit a pharmacy or pharmacist that dispenses a pharmaceutical product
12041204 from, nor may a pharmacy benefit manager penalize the pharmacy or pharmacist
12051205 for, informing an individual about the cost of the pharmaceutical product, the
12061206 amount in reimbursement that the pharmacy or pharmacist receives for dispensing
12071207 the pharmaceutical product, the cost and clinical efficacy of a less expensive
12081208 alternative to the pharmaceutical product, or any difference between the cost to the
12091209 individual under the individual[s pharmacy benefits plan or program and the cost
12101210 to the individual if the individual purchases the pharmaceutical product without
12111211 making a claim for benefits under the individual[s pharmacy benefits plan or
12121212 program.
12131213 SECTION 30. 632.865 (5t) of the statutes is created to read:
12141214 632.865 (5t) EXCLUSION OF PHARMACIES PROHIBITED. No pharmacy benefit
12151215 manager, 3rd-party payer, or health benefit plan may exclude a pharmacy or
12161216 pharmacist from its network because the pharmacy or pharmacist serves less than
12171217 a certain portion of the population of the state or serves a population living with
12181218 certain health conditions.
12191219 SECTION 31. 632.865 (6) (bm) of the statutes is created to read:
12201220 632.865 (6) (bm) Requirements of audits. An entity that conducts audits of
12211221 pharmacists of pharmacies shall ensure all of the following:
12221222 1. Each pharmacist or pharmacy audited by the entity is audited under the
12231223 same standards and parameters as other similarly situated pharmacists or
12241224 pharmacies audited by the entity.
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12511251 SECTION 31
12521252 2. The entity randomizes the prescriptions that the entity audits and the
12531253 entity audits the same number of prescriptions in each prescription benefit tier.
12541254 3. Each audit of a prescription reimbursed under Part D of Medicare under 42
12551255 USC 1395w-101 et seq. is conducted separately from audits of prescriptions
12561256 reimbursed under other policies or plans.
12571257 SECTION 32. 632.865 (6) (c) 3. of the statutes is amended to read:
12581258 632.865 (6) (c) 3. Deliver to the pharmacist or pharmacy a final audit report,
12591259 which may be delivered electronically, within 90 days of the date the pharmacist or
12601260 pharmacy receives the preliminary report or the date of the final appeal of the
12611261 audit, whichever is later. The final audit report under this subdivision shall
12621262 include specific documentation of any alleged errors and shall include any response
12631263 provided to the auditor by the pharmacy or pharmacist and consider and address
12641264 the pharmacy[s or pharmacist[s response.
12651265 SECTION 33. 632.865 (6) (c) 3m. of the statutes is created to read:
12661266 632.865 (6) (c) 3m. If the entity delivers to the pharmacist or pharmacy a
12671267 preliminary report of the audit or final audit report that references a billing code,
12681268 drug code, or other code associated with audits, provide an electronic link to a plain
12691269 language explanation of the code.
12701270 SECTION 34. 632.865 (6g) of the statutes is created to read:
12711271 632.865 (6g) RECOUPMENT. (a) No pharmacy benefit manager may recoup
12721272 any reimbursement made to a pharmacist or pharmacy for errors that have no
12731273 actual financial harm to an enrollee or a policy or plan sponsor unless the error is
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12991299 SECTION 34
13001300 the result of the pharmacist or pharmacy failing to comply with a formal corrective
13011301 action plan.
13021302 (b) No pharmacy benefit manager may use extrapolation in calculating
13031303 reimbursements that it may recoup. The finding of errors for which reimbursement
13041304 will be recouped shall be based on an actual error in reimbursement and not on a
13051305 projection of the number of patients served having a similar diagnosis or on a
13061306 projection of the number of similar orders or refills for similar prescription drugs.
13071307 (c) A pharmacy benefit manager that recoups any reimbursement made to a
13081308 pharmacist or pharmacy for an error that was the cause of financial harm shall
13091309 return the recouped reimbursement to the enrollee or the policy or plan sponsor
13101310 who was harmed by the error.
13111311 SECTION 35. 632.865 (6r) of the statutes is created to read:
13121312 632.865 (6r) QUALITY PROGRAMS. No pharmacy benefit manager may base
13131313 any criteria of a quality program in a contract between a pharmacy and a pharmacy
13141314 benefit manager on a factor for which the pharmacy does not have complete and
13151315 exclusive control.
13161316 SECTION 36. 632.865 (8) of the statutes is created to read:
13171317 632.865 (8) RETALIATION PROHIBITED. (a) In this subsection, XretaliateY
13181318 includes any of the following actions taken by a pharmacy benefit manager:
13191319 1. Terminating or refusing to renew a contract with a pharmacy or
13201320 pharmacist.
13211321 2. Subjecting a pharmacy or pharmacist to increased audits.
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13471347 SECTION 36
13481348 3. Failing to promptly pay a pharmacy or pharmacist any money the
13491349 pharmacy benefit manager owes to the pharmacy or pharmacist.
13501350 (b) A pharmacy benefit manager may not retaliate against a pharmacy or
13511351 pharmacist for reporting an alleged violation of this section or for exercising a right
13521352 or remedy under this section.
13531353 (c) In addition to any other remedies provided by law, a pharmacy or
13541354 pharmacist may bring an action in court for injunctive relief based on a violation of
13551355 par. (b). In addition to equitable relief, the court may, notwithstanding s. 814.04 (1),
13561356 award a pharmacy or pharmacist that prevails in such an action reasonable
13571357 attorney fees and costs in prosecuting the action.
13581358 SECTION 37. Initial applicability.
13591359 (1) AFFILIATED REIMBURSEMENTS . Except as provided in sub. (4), the
13601360 treatment of s. 632.865 (2d) (d) first applies to a reimbursement amount paid for on
13611361 a claim for reimbursement submitted on the effective date of this subsection.
13621362 (2) PROFESSIONAL DISPENSING FEES. Except as provided in sub. (4), the
13631363 treatment of s. 632.865 (2h) first applies to a pharmaceutical product that is
13641364 dispensed on the effective date of this subsection.
13651365 (3) PHARMACY BENEFIT MANAGER-IMPOSED FEES. Except as provided in sub.
13661366 (4), the treatment of s. 632.865 (2p) first applies to remuneration collected by a
13671367 pharmacy benefit manager on the effective date of this subsection.
13681368 (4) CONTRACTS. For a pharmacy benefit manager providing pharmacy benefit
13691369 manager services under a contract that contains any provision inconsistent with
13701370 the treatment of s. 632.861 (1m), (3g), (3r), or (4) (a) or (e) or 632.865 (1) (ab), (ac),
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13971397 SECTION 37
13981398 (ae), (an), (aq), (at), (bm), (cg), or (cr), (2), (2d), (2h), (2p), (2t), (4m), (5) (e), (5d), (5h),
13991399 (5p), (5t), (6) (bm) or (c) 3. or 3m., (6g), (6r), or (8), the renumbering of s. 632.865 (4),
14001400 or the creation of s. 632.865 (4) (b), the treatment of s. 632.861 (1m), (3g), (3r), or (4)
14011401 (a) or (e) or 632.865 (1) (ab), (ac), (ae), (an), (aq), (at), (bm), (cg), or (cr), (2), (2d), (2h),
14021402 (2p), (2t), (4m), (5) (e), (5d), (5h), (5p), (5t), (6) (bm) or (c) 3. or 3m., (6g), (6r), or (8),
14031403 the renumbering of s. 632.865 (4), or the creation of s. 632.865 (4) (b), as applicable,
14041404 first applies to the pharmacy benefit manager with respect to the pharmacy benefit
14051405 manager services provided under the contract on the day on which the contract
14061406 expires or is extended, modified, or renewed, whichever occurs first.
14071407 (5) APPLICATION OF PRESCRIPTION DRUG PAYMENTS.
14081408 (a) For policies and plans containing provisions inconsistent with the
14091409 treatment of s. 632.862, that treatment first applies to policy or plan years
14101410 beginning on January 1 of the year following the year in which this paragraph takes
14111411 effect, except as provided in par. (b).
14121412 (b) For policies or plans that are affected by a collective bargaining agreement
14131413 containing provisions inconsistent with the treatment of s. 632.862, that treatment
14141414 first applies to policy or plan years beginning on the effective date of this paragraph
14151415 or on the day on which the collective bargaining agreement is newly established,
14161416 extended, modified, or renewed, whichever is later.
14171417 SECTION 38. Effective dates. This act takes effect on the day after
14181418 publication, except as follows:
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14431443 SECTION 38
14441444 (1) APPLICATION OF PRESCRIPTION DRUG PAYMENTS. The treatment of s.
14451445 632.862 takes effect on the first day of the 4th month beginning after publication.
14461446 (END)
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