SB 549

This bill imposes fiduciary and disclosure requirements on pharmacy benefit

managers. Pharmacy benefit managers contract with plans that provide

prescription drug benefits to administer that benefit for the plans. They also have

contracts with pharmacies and pay the pharmacies for providing the drugs to the

plan beneficiaries.

The bill provides that a pharmacy benefit manager owes a fiduciary duty to a

plan sponsor. The bill also requires that a pharmacy benefit manager annually

disclose all of the following information to the plan sponsor:

1. The indirect profit received by the pharmacy benefit manager from owning

a pharmacy or service provider.

2. Any payments made to a consultant or broker who works on behalf of the plan

sponsor.

3. From the amounts received from drug manufacturers, the amounts retained

by the pharmacy benefit manager that are related to the plan sponsor's claims or

bona fide service fees.

4. The amounts received from network pharmacies and the amount retained

by the pharmacy benefit manager.