SB555 (2024) Detail

Relative to receipt of pharmaceutical rebates by insurers and pharmacy benefits managers.


SB 555-FN - AS AMENDED BY THE HOUSE

 

03/07/2024   0832s

23May2024... 1794h

2024 SESSION

24-2870

05/08

 

SENATE BILL 555-FN

 

AN ACT relative to receipt of pharmaceutical rebates by insurers and pharmacy benefits managers.

 

SPONSORS: Sen. Avard, Dist 12; Sen. Watters, Dist 4; Sen. Innis, Dist 7; Sen. Birdsell, Dist 19; Sen. Soucy, Dist 18; Sen. Bradley, Dist 3; Sen. Gannon, Dist 23; Sen. Pearl, Dist 17; Sen. Gendreau, Dist 1; Sen. Carson, Dist 14; Sen. Fenton, Dist 10; Rep. Pauer, Hills. 36; Rep. Mooney, Hills. 12

 

COMMITTEE: Health and Human Services

 

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AMENDED ANALYSIS

 

This bill removes the prospective repeal of RSA 415-A:7, relative to insurer cost sharing of pharmaceutical rebates.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/07/2024   0832s

23May2024... 1794h 24-2870

05/08

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to receipt of pharmaceutical rebates by insurers and pharmacy benefits managers.

 

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

 

1  Repeal.  2020, 15:2, relative to the prospective repeal of RSA 415-A:7, is repealed.

2  Effective Date. This act shall take effect June 30, 2024.

 

LBA

24-2870

Amended 4/23/24

 

SB 555-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2024-0832s)

 

AN ACT relative to receipt of pharmaceutical rebates by insurers and pharmacy benefits managers.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Revenue Fund(s)

General Fund

Insurance Premium Tax Revenue

Expenditures

$0

$0

$0

$0

Funding Source(s)

None

 

Appropriations

$0

$0

$0

$0

Funding Source(s)

None

 

Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A

Does this bill authorize new positions to implement this bill? [X] No

 

Estimated Political Subdivision Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

County Revenue

$0

$0

$0

$0

County Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

Local Revenue

$0

$0

$0

$0

Local Expenditures

$0

Indeterminable

Indeterminable

Indeterminable

 

METHODOLOGY:

This bill revises the annual reporting requirement for pharmacy benefits managers (PBMs) regarding pharmaceutical rebates.  The bill also revises the percentage of rebates insurers are required to make available to enrollees, increases the fine for noncompliance, and removes prospective  repeal of RSA 415-A:7, relative to insurer cost sharing of rebates.

 

The Insurance Department states section 2, II,(a), of the bill would require insurers to remit at least 50% of product specific rebates directly to the consumer at the point of sale, and that the remaining value of negotiated rebates remitted to the insurer, be applied to the insurer's plan design to offset future years’ premiums.  Currently insurers attest to the Department that the entire value of PBM-negotiated rebates are remitted to insurers to offset future years’ premiums.  The Department assumes approximately 50% of the nominal value of prescription drug rebates may be redirected to consumers at the point of sale. In plan year 2022, the estimated value of rebates was $90 million.  Under this bill 50% or $45 million may not be available to offset future premiums.  The Department assumes the changes to carrier reporting requirements will result in a "trivial, but non-zero" fiscal impact to insurance carriers from increased administrative costs.

 

The Insurance Department assumes, if this bill were to become law, there would be a potentially significant upward pressure on premiums for the commercial, fully insured plans including county and municipal employers purchasing these plans and increased general fund premium tax revenues, however the extent of such increases is indeterminable at this time.

 

AGENCIES CONTACTED:

Department of Insurance

 

Amendments

Date Amendment
Feb. 21, 2024 2024-0832s
March 21, 2024 2024-0967s
May 16, 2024 2024-1794h

Links


Date Body Type
Feb. 14, 2024 Senate Hearing
Feb. 14, 2024 Senate Hearing
March 7, 2024 Senate Floor Vote
March 21, 2024 Senate Floor Vote
April 30, 2024 House Hearing
May 15, 2024 House Exec Session
May 15, 2024 House Floor Vote

Bill Text Revisions

SB555 Revision: 42307 Date: May 23, 2024, 1:18 p.m.
SB555 Revision: 42079 Date: May 16, 2024, 8:30 a.m.
SB555 Revision: 41135 Date: April 24, 2024, 8:25 a.m.
SB555 Revision: 41338 Date: March 21, 2024, 9:48 a.m.
SB555 Revision: 40969 Date: Feb. 21, 2024, 4:28 p.m.
SB555 Revision: 40356 Date: Feb. 6, 2024, 2:24 p.m.

Docket


May 23, 2024: Ought to Pass with Amendment 2024-1794h: MA VV 05/23/2024 HJ 14


May 23, 2024: Amendment # 2024-1794h: AA VV 05/23/2024 HJ 14


May 16, 2024: Committee Report: Ought to Pass with Amendment # 2024-1794h 05/15/2024 (Vote 18-0; CC) HC 20 P. 7


May 8, 2024: Executive Session: 05/15/2024 10:00 am LOB 302-304


May 1, 2024: Work Session: 05/07/2024 01:15 pm LOB 302-304


April 9, 2024: Public Hearing: 04/30/2024 10:00 am LOB 302-304


April 2, 2024: Introduced (in recess of) 03/28/2024 and referred to Commerce and Consumer Affairs HJ 10


March 21, 2024: Ought to Pass: RC 19Y-4N, MA; OT3rdg; 03/21/2024; SJ 7


March 21, 2024: Sen. Rosenwald Floor Amendment # 2024-0967s, AF, VV; 03/21/2024; SJ 7


March 13, 2024: Committee Report: Ought to Pass, 03/21/2024, Vote 5-2; SC 11


March 7, 2024: Ought to Pass with Amendment 2024-0832s, MA, VV; Refer to Finance Rule 4-5; 03/07/2024; SJ 6


March 7, 2024: Committee Amendment # 2024-0832s, AA, VV; 03/07/2024; SJ 6


Feb. 22, 2024: Committee Report: Ought to Pass with Amendment # 2024-0832s, 03/07/2024; Vote 5-0; CC; SC 9


Feb. 8, 2024: Hearing: 02/14/2024, Room 101, LOB, 09:15 am; SC 7


Feb. 12, 2024: ==ROOM CHANGE== Hearing: 02/14/2024, Room 100, SH, 09:15 am; ; SC 7


Dec. 14, 2023: To Be Introduced 01/03/2024 and Referred to Health and Human Services; SJ 1