HB 23-1227

  • Colorado House Bill
  • 2023 Regular Session
  • Introduced in House Apr 14, 2023
  • Passed House Apr 13, 2023
  • Passed Senate May 01, 2023
  • Signed by Governor May 10, 2023

Enforce Laws Against Pharmacy Benefit Managers

Abstract

Under current law, pharmacy benefit managers (PBMs) are required to perform certain acts and are prohibited from engaging in certain acts. Specifically, PBMs are prohibited from: Requiring patients to obtain their prescription drugs through mail order; Charging pharmacies fees to adjudicate claims; Requiring pharmacies to obtain accreditations or certifications that are different than what the PBM requires of its affiliated pharmacies; Retroactively reducing a payment made to a pharmacy on a drug claim after the point of sale or reimbursing a pharmacy in an amount that is less than the amount reimbursed to its own affiliated pharmacy for the same pharmacy service; Modifying the prescription drug formulary under a health benefit plan during the plan year; With regard to audits, using specified techniques in calculating a recoupment or penalty, subjecting a pharmacy to recoupment when a clerical error is discovered, and requiring pharmacies to be audited more than once a year; Prohibiting a pharmacy or pharmacist from, or penalizing a pharmacy or pharmacist for, providing information to patients about more affordable, therapeutically equivalent alternatives to a prescribed drug; or Requiring a pharmacy or pharmacist to charge or collect a copayment from an insured patient that exceeds the total charge submitted by the pharmacy for the prescription drug. Additionally, PBMs are required to: Provide pharmacies 7 days' written notice before an audit, conduct an audit by or in consultation with a pharmacist, allow the pharmacy to supplement claims documentation, and establish an appeals process; Provide an insured individual, the insured's health-care provider, or a third party acting on behalf of the insured or provider with up-to-date and real-time cost, benefit, and coverage information under the terms of the insured's health benefit plan; and Provide contracted pharmacies with the list of sources the PBM used in determining maximum allowable cost pricing, update the information every 7 days, allow pharmacies the ability to readily review the information, follow specified requirements when placing a drug on the maximum allowable cost list, and establish an appeals process to resolve disputes. The act specifies that the commissioner of insurance (commissioner) has the power to enforce these prohibitions and requirements and impose penalties on PBMs for failing to comply with these prohibitions and requirements. The commissioner is also authorized to adopt rules as necessary to implement and enforce these prohibitions and requirements. Additionally, the act requires PBMs to register with and pay a registration fee to the commissioner and authorizes the commissioner to deny, suspend, revoke, or refuse to issue, continue, or renew a PBM registration or to issue a cease-and-desist order if the commissioner finds that a PBM has engaged in specified activities, including violating an insurance law. The PBM registration fees imposed under the act are to be used to fund the costs of the division of insurance in enforcing requirements and prohibitions on PBMs. The act appropriates $206,647 from the division of insurance cash fund to the department of regulatory agencies for use by the division of insurance for personal services and operating expenses related to implementing the act. APPROVED by Governor May 10, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

Bill Sponsors (4)

Votes


Actions


May 10, 2023

Office of the Governor

Governor Signed

May 05, 2023

Office of the Governor

Sent to the Governor

Senate

Signed by the President of the Senate

May 04, 2023

House

Signed by the Speaker of the House

May 02, 2023

House

House Considered Senate Amendments - Result was to Concur - Repass

May 01, 2023

Senate

Senate Third Reading Passed - No Amendments

Apr 28, 2023

Senate

Senate Second Reading Special Order - Passed with Amendments - Committee

Senate

Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

  • Committee-Passage
  • Referral-Committee
Appropriations Senate Committee of the Whole

Apr 25, 2023

Senate

Senate Committee on Finance Refer Unamended to Appropriations

  • Referral-Committee
Appropriations Finance

Apr 20, 2023

Senate

Senate Committee on Health & Human Services Refer Amended to Finance

  • Referral-Committee
Finance Health & Human Services

Apr 14, 2023

Senate

Introduced In Senate - Assigned to Health & Human Services

  • Introduction
Health & Human Services

Apr 13, 2023

House

House Third Reading Passed - No Amendments

Apr 12, 2023

House

House Second Reading Special Order - Passed with Amendments - Committee, Floor

Apr 10, 2023

House

House Second Reading Special Order - Laid Over Daily - No Amendments

Apr 03, 2023

House

House Second Reading Laid Over Daily - No Amendments

Mar 30, 2023

House

House Committee on Appropriations Refer Amended to House Committee of the Whole

  • Committee-Passage
  • Referral-Committee
House Committee of the Whole Appropriations

Mar 14, 2023

House

House Committee on Health & Insurance Refer Amended to Appropriations

  • Referral-Committee
Appropriations

Mar 02, 2023

House

Introduced In House - Assigned to Health & Insurance

  • Introduction
Health & Insurance

Bill Text

Bill Text Versions Format
Signed Act (05/10/2023) PDF
Final Act (05/05/2023) PDF
Rerevised (05/01/2023) PDF
Revised (04/28/2023) PDF
Reengrossed (04/13/2023) PDF
Engrossed (04/12/2023) PDF
Introduced (03/02/2023) PDF
PA3 (04/21/2023) PDF
PA2 (03/30/2023) PDF
PA1 (03/16/2023) PDF
Committee Amendment PDF

Related Documents

Document Format
Fiscal Note SA1 (03/28/2023) PDF
Fiscal Note SA2 (04/27/2023) PDF
Fiscal Note FN1 (03/13/2023) PDF
Fiscal Note FN2 (03/22/2023) PDF
Fiscal Note FN3 (04/24/2023) PDF
Fiscal Note FN4 (06/28/2023) PDF

Sources

Data on Open States is updated periodically throughout the day from the official website of the Colorado General Assembly.

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