SAVANNAH, GA.–The nation's state lawmakers, after considering a model act to regulate pharmacy benefit managers, have decided to shelve the plan.
The National Conference of Insurance Legislators' decision to postpone action indefinitely came after a representative for health insurers told legislators that pharmacy benefit managers are not a problem area that needs regulation, and it would instead hamper insurers' ability to deliver lower-cost prescription drugs to employees.
PBM's are contracted by health and workers' compensation insurers to manage prescription benefits for those insurers. The vote by NCOIL's Health, Long Term Care and Health Retirement Issues Committee to postpone a measure establishing standards and criteria to regulate PBMs was almost unanimous, with dissent expressed by Vermont State Rep. Virginia Milkey, D-Brattleboro. Among the provisions in the draft model is a requirement that a PBM would have to disclose financial arrangements, including industry rebates.
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