Bill Text - SB481 (2018)

Establishing a committee to study the impact of pharmacy benefit manager operations on cost, administration, and distribution of prescription drugs.


Revision: Feb. 15, 2018, 7:55 p.m.

SB 481 - AS AMENDED BY THE SENATE

 

02/15/2018   0511s

2018 SESSION

18-2904

01/08

 

SENATE BILL 481

 

AN ACT establishing a committee to study the impact of pharmacy benefit manager operations on cost, administration, and distribution of prescription drugs.

 

SPONSORS: Sen. Soucy, Dist 18; Sen. Cavanaugh, Dist 16; Sen. Carson, Dist 14; Rep. Danielson, Hills. 7; Rep. Hennessey, Graf. 1; Rep. Massimilla, Graf. 1; Rep. Luneau, Merr. 10

 

COMMITTEE: Health and Human Services

 

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ANALYSIS

 

This bill establishes a committee to study the impact of pharmacy benefit manager operations on cost, administration, and distribution of prescription drugs.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/15/2018   0511s 18-2904

01/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT establishing a committee to study the impact of pharmacy benefit manager operations on cost, administration, and distribution of prescription drugs.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Statement of Intent.  The general court recognizes that rising health care expenditures are a critical issue to the citizens of New Hampshire.  While the distribution and reimbursement of prescription drugs is a complex national issue that encompasses numerous entities, the role and oversight of pharmacy benefit managers (PBMs), which sit in the middle of this ecosystem wield significant decision making power.  At least one New Hampshire health care insurer has recently announced changes to the use of PBMs which is expected to lower costs.  The study committee established in this act will review the PBM system to determine whether changes to New Hampshire's PBM statutes could assist insurers in lowering related costs.

2  Committee Established.  There is established a committee to study the impact of pharmacy benefit manager operations on cost, administration, and distribution of prescription drugs.

3  Membership and Compensation.

I.  The members of the committee shall be as follows:

(a)  One member of the senate, appointed by the president of the senate.

(b)  Three members of the house of representatives, appointed by the speaker of the house of representatives.

II.  Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

4  Duties.  The committee shall:

I.  Study the role pharmacy benefit managers (PBM) play in the cost, administration, and distribution of prescription drugs.  The committee's study shall include, but not be limited to:

(a)  The effects of PBMs on the overall costs of health insurers.

(b)  PBMs use of "clawbacks" and "gag clauses" and the impact on consumer costs and rebates.

(c)  The impact of PBMs with respect to retail pharmacy pricing decisions.

(d)  A review of appropriate PBM oversight and the potential for such oversight to aid in lowering drug costs to consumers.

(e)  A review of the potential differences in costs for insurers that use PBMs to manage pharmacy benefits and insurers that independently manage this benefit.

(f)  Access to pharmacies.

II.  The committee may solicit input from any person or entity the committee deems relevant to its study.

5  Chairperson; Quorum.  The members of the study committee shall elect a chairperson from among the members.  The first meeting of the committee shall be called by the first-named senate member.  The first meeting of the committee shall be held within 45 days of the effective date of this section.  Three members of the committee shall constitute a quorum.

6  Report.  The committee shall report its findings and any recommendations for proposed legislation to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2018.

7  Effective Date.  This act shall take effect upon its passage.