SB 532

This bill generally allows the commissioner of insurance to regulate pharmacy

benefit managers. A pharmacy benefit manager is an entity that procures

prescription drugs at a negotiated rate for dispensation; administers or manages

prescription drug benefits; performs mail service pharmacy services; processes

pharmacy benefit claims; develops clinical formularies and performs management

services; contracts and administers prescription drug rebates; or conducts disease

management programs or patient compliance, therapeutic intervention, and generic

substitution programs.

The bill prohibits a person, except an insurer already regulated by the

commissioner, from performing any activities of a pharmacy benefit manager in this

state without first registering with the commissioner. Certain pharmacy benefit

managers must be licensed by the Pharmacy Examining Board and registered as a

pharmacy benefit manager. If the Pharmacy Examining Board revokes the

pharmacy or distributor license for such a pharmacy benefit manager, the

commissioner must revoke the pharmacy benefit manager registration. An

applicant for registration as a pharmacy benefit manager must file an appropriate

application and pay any registration fee set by the commissioner. A registration is

valid for one year. The commissioner may refuse to register a pharmacy benefit

manager for which a previous registration was suspended or revoked.

Under the bill, the commissioner, after a hearing, may suspend or revoke a

registration of a pharmacy benefit manager if the registered pharmacy benefit

manager, or an officer, director, or employee of a registered pharmacy benefit

manager does any of the actions specified in the bill. The commissioner may

promulgate rules necessary to carry out the intent of pharmacy benefit manager

registration. The bill also allows the commissioner to use his or her authority that

is granted to regulate insurers to similarly regulate pharmacy benefit managers,

including the authority to require reports, conduct examinations, and issue orders.