Bill Adds Protections for Small Pharmacies

By: Ark-La-Tex Staff Writer

Louisiana Governor Jeff Landry announced the signing of House Bill 264 into law, a significant legislative measure aimed at supporting independent pharmacies across the state. The new law introduces several reforms targeting the practices of Pharmacy Benefit Managers (PBMs), entities that manage prescription drug benefits for insurers and employers.

One of the key provisions of the law is the prohibition of "spread pricing," a practice where PBMs charge health plans more for a drug than they reimburse pharmacies. Additionally, the law mandates that PBMs pass 100% of manufacturer rebates to insurers or employers, ensuring that the savings are passed on to consumers. The Louisiana Department of Insurance has been granted enhanced authority to audit PBM contracts and enforce compliance with these new regulations.

Independent pharmacists have expressed strong support for the legislation, viewing it as a vital step in leveling the playing field with larger corporate pharmacy chains. Many have reported financial challenges due to PBM practices that undercut reimbursement rates, sometimes resulting in losses on filled prescriptions. The reforms are expected to improve the financial viability of independent pharmacies, particularly in rural areas, thereby preserving local access to pharmaceutical services.

Despite the passage of House Bill 264, the broader issue of PBM ownership of pharmacies remains contentious. A more stringent bill, House Bill 358, which would have prohibited companies from owning both pharmacies and PBMs, failed to pass the legislature. Governor Landry has indicated plans to reintroduce similar legislation in the future to further address concerns over PBM practices and their impact on independent pharmacies.

The enactment of House Bill 264 represents a significant policy shift aimed at curbing the influence of PBMs in Louisiana's pharmaceutical landscape and providing much-needed support to independent pharmacies serving communities across the state.