HB 1290

Abstract

Pharmacy benefits managers; licensure and regulation. Provides that no person is authorized to provide pharmacy benefits management services or otherwise act as a pharmacy benefits manager without first obtaining a license from the State Corporation Commission. The measure prohibits a carrier on its own or through its contracted pharmacy benefits manager or representative of a pharmacy benefits manager from (i) causing or knowingly permitting the use of any advertisement, promotion, solicitation, representation, proposal, or offer that is untrue; (ii) charging a pharmacist or pharmacy a fee related to the adjudication of a claim other than a reasonable fee for an initial claim submission; (iii) reimbursing a pharmacy or pharmacist an amount less than the amount that the pharmacy benefits manager reimburses a pharmacy benefits manager affiliate for providing the same pharmacist services, calculated on a per-unit basis using the same generic product identifier or generic code number and reflecting all drug manufacturer's rebates, direct and indirect administrative fees, and costs and any remuneration; or (iv) penalizing or retaliating against a pharmacist or pharmacy for exercising rights provided by this measure. The measure also prohibits a carrier from (a) imposing provider accreditation standards or certification requirements inconsistent with, more stringent than, or in addition to requirements of the Virginia Board of Pharmacy or other state or federal entity; (b) including any mail order pharmacy or pharmacy benefits manager affiliate in calculating or determining network adequacy; or (c) conducting spread pricing in the Commonwealth. The measure also imposes recordkeeping and reporting requirements. The bill has a delayed effective date of October 1, 2020. This bill incorporates HB 1292, HB 1459, HB 1479, and HB 1659 and is identical to SB 251.

Pharmacy benefits managers; licensure and regulation. Provides that, beginning January 1, 2021, no person is authorizedto provide pharmacy benefits management services or otherwise actas a pharmacy benefits manager without first obtaining a licensefrom the State Corporation Commission. Such licenses are to be renewedevery three years. The bill authorizes the Commission, in its discretion,to issue a pharmacy benefits license subject to restrictions or limitations,including restrictions and limitations on the type of services thatmay be supplied or the activities in which the pharmacy benefitsmanager may engage. The bill provides that the Commission may suspend,revoke, or place on probation a pharmacy benefits manager licenseif (i) the pharmacy benefits manager has engaged in fraudulent activitythat constitutes a violation of state or federal law, (ii) the Commissionhas received consumer complaints that justify such an action to protectthe safety or interests of consumers, (iii) the pharmacy benefitsmanager fails to pay any required licensure or renewal fee, or (iv)the pharmacy benefits manager fails to comply with the provisionsof this article, Commission regulations, or other applicable law.The bill also imposes recordkeeping and reporting requirements andprovides that information or data acquired therefrom is consideredproprietary and confidential and is not subject to the Virginia Freedomof Information Act.