The Kansas House and Senate have voted to put restrictions on what are called pharmacy benefit managers in a way to curb price increases for prescription drugs.
Lawmakers have been discussing changes for PBMs for some time, and Senate Bill 20 mandates drug rebates to pass through to health insurance plans. If signed by Kansas Governor Laura Kelly, it also ends what is called “spread pricing” when PBMs charge health insurance plans more money than they reimburse to pharmacies. The Kansas Insurance Department, which drafted the policy, says a goal is to protect patient choices and local pharmacies by ensuring no variances in reimbursements. Another goal is to add more accountability and transparency to the overall process.
17th District Senator Mike Argabright says there are a lot of benefits for patients and pharmacies.
60th District Representative Mark Schreiber called it “significant legislation” for several reasons, but specifically for the transparency it is supposed to provide.
Part of SB 20 also requires PBMs to reimburse pharmacies at the most recently published National Average Drug Acquisition Cost plus a “professional dispensing fee” of $10.50. Schreiber says lawmakers were displeased with some emails they received on the topic.
SB 20 passed the Senate 32-8 and the House 104-17. Besides Argabright and Schreiber, 13th District Representative Duane Droge and 76th District Representative Brad Barrett of Osage City voted in favor.
