The Kansas Legislature has approved sweeping regulations targeting pharmacy benefit managers with the passage of the Kansas Consumer Prescription Protection and Accountability Act.
The bill establishes a comprehensive framework governing PBM practices, including bans on spread pricing and point-of-sale fees, requirements to pass rebates through to health plans and minimum reimbursement rates for pharmacies tied to the National Average Drug Acquisition Cost reference, plus a $10.50 per prescription dispensing fee to be paid by PBMs to pharmacies to cover their costs. The provisions were outlined in a March 24 news release from Kansas Insurance Commissioner Vicki Schmidt.
The bill passed the Senate and the House by wide margins, and heads to the governor’s desk. It also grants the Department of Insurance expanded oversight authority, including the ability to conduct financial and market conduct examinations, register auditing entities and enforce transparency through reporting requirements and penalties.
Ms. Schmidt, whose office developed the legislation, described the measure as a “monumental reform,” claiming it will curb PBM practices and strengthen protections for patients, local pharmacies and rural communities.
“No longer will Kansas let PBMs threaten the pocketbooks of patients,” she said in the March 24 release.
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