2020 Legislative Update: Week 7

Week 7 of Georgia’s legislative session (February 24-28 and days 17-21) saw continued attention on legislation related to the practices of PBMs both through committee hearings and committee votes on previously introduced legislation as well as new legislation introduced.

HB 918; HB 946; and HB 947

HB 918 (Rep. Sharon Cooper’s bill updating the Pharmacy Audit Bill of Rights and strengthen the Pharmacy Anti-Steering Act) and Rep. Knight’s HB 946 (PBM legislation) and HB 947 (Actuarial study & Medicaid cave out) were all heard by the House Special Committee on Access to Quality Healthcare on Thursday, the 27th. While it was originally scheduled to be a two-hour hearing, Chairman Newton allowed the hearing to continue to ensure that pharmacists and other patient advocates had the opportunity to be speak and be heard. Please reach out to Chairman Newton and thank him for ensuring that pharmacists were heard.

In explaining his legislation, Rep. Knight delivered a hard hitting and methodical presentation including outlining examples of PBM steering and issues in Medicaid managed care. On HB 918, Rep. Cooper delivered an impassioned speech on the ills of patient steering and abusive audit practices.

The Committee also heard from an array of others on the negative impact on patient care including the Medical Association of Georgia, the National Multiple Sclerosis Society, and the Rx in Reach Coalition. Georgia Pharmacists Thomas Jusu, Chelley Williams, and Kevin Woody also presented moving and compelling testimony in support of the legislation.

Friday morning the committee voted on and passed all three bills out of Committee. Next stop is the Rules Committee and then the House floor.

At the same time as the House Special Committee on Access to Quality Healthcare meeting Friday morning, the Senate Insurance and Labor subcommittee voted in favor of SB 313 and it now goes to the full committee for a vote. Subcommittee Chair Larry Walker and Senator Freddie Sims Powell voted in favor of SB 313. Please reach out and thank them for their support.

Legislation Introduced in Week 7

HB 991

Introduced by Representative Hatchett, HB 991 looks to put an end to opaque practices and lack of transparency by CMOs, PBMs, and others contracted with state plans by bringing true transparency and oversight by creating the Healthcare Transparency and Accountability Oversight Committee which will have the authority to review conduct and performance of state health care plan contractors. GPhA is strongly in support of this legislation.

HB 1027

Introduced by Rep. Hawkins, this bill looks to require PBMs to pass at least 80% of rebates received or to be received on to patients at the point of sale via reduction of a patients cost share amount. of rebates it receives to patients at the point of sale. The state and Medicaid managed care would be carved out this requirement.

SB 427

Introduced by Senator Mullis, HB 427 is a companion bill to HB 947 and looks to task an actuarial study of savings to the state by carving prescription drugs out of Medicaid managed care and having those benefits administered in Georgia’s Medicaid fee for service program. If the study reflects savings of $20 million or more DCH will proceed with a carve out to implemented by July of 2021. If the savings are between $10 million and $20 million DCH is authorized to proceed. Please reach out to Senator Mullis and thank him for bringing this important piece of legislation and for being such a staunch supporter of pharmacists and their patients.

SB 433

Introduced by Senator Jones, this bill seeks to bring transparency to the prescription drugs treating diabetes. Specifically, this bill contains reporting requirements for insulin drug manufacturers, pharmacy benefits managers, and pharmacists. GPhA is supportive of efforts at transparency and will look to engage and monitor.

Other Previously Introduced Legislation

HB 888, Rep. Hawkins’ surprise billing legislation, was favorably reported by the House Special Committee on Access to Care.

HB 952 which looks to restrict corporations that own multiple pharmacies from implementing corporate policies and procedures that restrict the quantity of controlled substances was favorably reported by the House Special Committee on Access to Quality Healthcare.

SB 303, providing for greater transparency of prices for nonemergency health care services, passed the Senate and makes its way to the House.

SB 321, Sen. Burke’s online provider legislation, was favorably reported by the Senate Insurance & Labor Committee and passed by the Senate. It now goes to the House for Consideration.

SB 359, Sen. Hustetler’s surprise billing legislation, was favorably reported by Senate HHS and passed on the House floor.