On February 28, 2024, Associate Policy Director Brianna January submitted written testimony to the Senate Finance Committee in opposition to SB 626- Pharmacy Benefits Managers- Definition of Purchaser and Alteration of Application of Law. This bill alters the definition of “purchaser” to limit the tools Pharmacy Benefits Managers (PBMs) can use to negotiate pharmaceutical prices on behalf of their clients, including county governments.
Counties are concerned with the bill’s impact on employer and employee costs. Assuming PBMs would pass any cost increases onto their customers, then the bill would increase costs to counties as employers provide pharmaceutical benefits and county staff via prescription premiums and deductibles.
In practice, SB 626 would substantially limit, if not negate, PBMs’ ability to leverage certain cost-saving tools critical to negotiating the best and fairest prescription drug prices for counties and our staff, like requiring 90-day supplies of certain drugs or requiring mail orders to fill certain prescriptions.
SB 626’s cross-file, HB 726, was heard on February 29, 2024 in the House Health and Government Operations Committee. Brianna January submitted written testimony in opposition to this bill.
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