HB26-1056 • 2026

Prescription Drug Benefit Information Transparency

The bill creates the "Prescription Drug Optimized Sourcing Transparency and Integrity Act" to prohibit a pharmacy benefit manager (PBM) or a health-care consultant from knowingly making or disseminati

Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. K. DeGraaf
Last action: 2026-02-17
Official status: House Committee on Health & Human Services Postpone Indefinitely
Effective date: Not listed

Plain English Breakdown

The bill summary does not specify enforcement mechanisms or penalties, only that the Commissioner will implement and enforce the section within existing appropriations.

Prescription Drug Benefit Information Transparency Act

This act creates rules to prohibit pharmacy benefit managers and health-care consultants from making false statements about prescription drug programs, requires them to share cost information with self-insured employers upon request, and recognizes that certain drug importation programs can be effective in reducing costs without harming patient care.

What This Bill Does

Creates the 'Prescription Drug Optimized Sourcing Transparency and Integrity Act'.
Prohibits pharmacy benefit managers (PBMs) or health-care consultants from knowingly making false statements about prescription drug optimized sourcing programs to self-insured employers or policyholders.
Requires PBMs or health-care consultants to provide detailed cost information for each prescription drug dispensed upon written request by a self-insured employer.
Recognizes that pharmacy stewardship programs, which include importing drugs legally, can be effective in reducing costs without harming patient care when done according to federal law.

Who It Names or Affects

Pharmacy benefit managers (PBMs) and health-care consultants who provide advice or services related to health plans, including prescription drug benefits.
Self-insured employers who offer their own health plans to employees.

Terms To Know

Pharmacy Stewardship Program: A program run by or for a self-insured employer that aims to optimize the financial performance of their pharmacy benefit while maintaining safety and continuity of therapy, without being insurance or a health plan.
Prescription Drug Optimized Sourcing Program: A lawful arrangement where certain prescription drugs can be dispensed through channels other than the regular network to reduce costs for self-insured employers while maintaining patient safety and equal or lower member cost share.

Limits and Unknowns

The bill does not create a new insurance product or mandate that employers adopt these programs.
It is unclear how this act will be enforced after the ninety-day period following final adjournment of the general assembly.
The effective date for this act has not been specified.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Health & Human Services

Passed [*]

Plain English: The amendment adds a new provision to the Colorado Revised Statutes that makes it illegal for pharmacy benefit managers or health-care consultants to spread misinformation, treating such violations as unfair or deceptive trade practices.

Adds a new section in the Colorado Revised Statutes (6-1-105) that defines spreading misinformation by PBMs and health-care consultants as an unfair or deceptive trade practice.
Modifies existing language to clarify that violating this new provision is considered an unfair or deceptive trade practice under 6-1-105.

The amendment text does not specify the penalties for these violations, which may be addressed elsewhere in the bill or other legislation.
Some technical details about how misinformation will be defined and enforced are not provided in this amendment.

Bill History

2026-02-17 House
House Committee on Health & Human Services Postpone Indefinitely
2026-01-14 House
Introduced In House - Assigned to Health & Human Services

Official Summary Text

The bill creates the "Prescription Drug Optimized Sourcing Transparency and Integrity Act" to prohibit a pharmacy benefit manager (PBM) or a health-care consultant from knowingly making or disseminating false or misleading statements or claims to a self-insured employer or policyholder about the legality or safety of a lawful prescription drug optimized sourcing program established by a pharmacy stewardship program.
Upon written request by a self-insured employer, a PBM or health-care consultant is required to provide certain cost information for each prescription drug dispensed under the health benefit plan.
The prohibition and information-sharing provisions of the bill do not restrict or limit the rights of a self-insured employer to purchase prescription drugs through and contract for a lawful prescription drug optimized sourcing program. The bill also recognizes that a pharmacy stewardship program is an effective cost-containment tool and is authorized when implemented in compliance with federal law and with the bill.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0306.01 Eden Rolland x2373 HOUSE BILL 26-1056
House Committees Senate Committees
Health & Human Services
A BILL FOR AN ACT
CONCERNING PRESCRIPTION DRUG SOURCING PROVIDED PURSUANT TO101
A HEALTH BENEFIT PLAN.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill creates the "Prescription Drug Optimized Sourcing
Transparency and Integrity Act" to prohibit a pharmacy benefit manager
(PBM) or a health-care consultant from knowingly making or
disseminating false or misleading statements or claims to a self-insured
employer or policyholder about the legality or safety of a lawful
prescription drug optimized sourcing program established by a pharmacy
HOUSE SPONSORSHIP
DeGraaf,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
stewardship program.
Upon written request by a self-insured employer, a PBM or
health-care consultant is required to provide certain cost information for
each prescription drug dispensed under the health benefit plan.
The prohibition and information-sharing provisions of the bill do
not restrict or limit the rights of a self-insured employer to purchase
prescription drugs through and contract for a lawful prescription drug
optimized sourcing program. The bill also recognizes that a pharmacy
stewardship program is an effective cost-containment tool and is
authorized when implemented in compliance with federal law and with
the bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Improving transparency and integrity in prescription drug4
purchasing protects employers and health benefit plan sponsors, supports5
patient safety, and reduces unnecessary costs, while preserving clinical6
decision-making; and7
(b) It is the policy of this state to permit the lawful personal-use8
importation of prescription drugs, otherwise known as pharmacy9
stewardship programs, optimized sourcing, or international sourcing, in10
order to reduce net plan costs without disrupting patient care.11
SECTION 2. In Colorado Revised Statutes, add 10-16-171 as12
follows:13
10-16-171. Pharmacy benefit managers - health-care14
consultants - prescription drug optimized sourcing - disclosure15
requirements - enforcement - short title - definitions.16
(1) Short title. T HE SHORT TITLE OF THIS SECTION IS THE17
"PRESCRIPTION DRUG OPTIMIZED SOURCING TRANSPARENCY AND18
INTEGRITY ACT".19
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(2) Definitions. AS USED IN THIS SECTION:1
(a) "H EALTH-CARE CONSULTANT " MEANS AN INDIVIDUAL OR2
ENTITY THAT PROVIDES PROFESSIONAL ADVICE , ANALYSIS, OR SERVICES3
TO A SELF-INSURED EMPLOYER REGARDING HEALTH BENEFIT PLAN DESIGN4
OR ADMINISTRATION , INCLUDING SERVICES RELATED TO PRESCRIPTION5
DRUG BENEFITS.6
(b) "N ATIONAL DRUG CODE " HAS THE MEANING SET FORTH IN7
SECTION 10-16-122.9 (2)(f).8
(c) (I) "PHARMACY STEWARDSHIP PROGRAM" MEANS A PROGRAM9
OPERATED BY OR ON BEHALF OF A SELF-INSURED EMPLOYER TO OPTIMIZE10
THE FINANCIAL PERFORMANCE OF THE SELF -INSURED EMPLOYER 'S11
PHARMACY BENEFIT WHILE MAINTAINING SAFETY , CONTINUITY OF12
THERAPY, AND EQUAL OR LOWER MEMBER COST SHARE . PRESCRIPTIONS13
NOT FULFILLED THROUGH THE PHARMACY STEWARDSHIP PROGRAM14
CONTINUE TO PROCESS UNDER THE HEALTH BENEFIT PLAN 'S EXISTING15
PHARMACY BENEFIT MANAGER, CARRIER, AND NETWORK.16
(II) A "PHARMACY STEWARDSHIP PROGRAM" INCLUDES THE USE OF17
OPTIMIZED SOURCING.18
(III) A "PHARMACY STEWARDSHIP PROGRAM" IS NOT:19
(A) INSURANCE OR A POLICY OF INSURANCE;20
(B) A HEALTH PLAN;21
(C) A PBM; OR22
(D) A THIRD-PARTY ADMINISTRATOR.23
(d) (I) "P RESCRIPTION DRUG OPTIMIZED SOURCING PROGRAM "24
MEANS A LAWFUL ARRANGEMENT OPERATED BY OR ON BEHALF OF A25
SELF-INSURED EMPLOYER UNDER WHICH A DEFINED SUBSET OF26
PRESCRIPTION DRUGS FOR COVERED PERSONS MAY BE DISPENSED27
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THROUGH CHANNELS OTHER THAN THE HEALTH BENEFIT PLAN 'S1
PHARMACY BENEFIT MANAGER OR CARRIER-ADMINISTERED NETWORK, IF2
AUTHORIZED BY FEDERAL LAW , TO REDUCE THE NET PLAN COST WHILE3
MAINTAINING PATIENT SAFETY, CONTINUITY OF THERAPY, AND EQUAL OR4
LOWER MEMBER COST SHARE. A PRESCRIPTION DRUG OPTIMIZED SOURCING5
PROGRAM IS NOT INSURANCE , AND PRESCRIPTIONS NOT FULFILLED6
THROUGH THE PROGRAM CONTINUE TO PROCESS UNDER A PLAN'S EXISTING7
PHARMACY BENEFIT MANAGER, CARRIER, AND NETWORK.8
(II) "P RESCRIPTION DRUG OPTIMIZED SOURCING PROGRAM "9
INCLUDES A PROGRAM FOR IMPORTING PRESCRIPTION DRUGS AUTHORIZED10
BY FEDERAL LAW AND FDA REGULATION.11
(e) "SELF-INSURED EMPLOYER" MEANS AN EMPLOYER THAT OFFERS12
A SELF-INSURED HEALTH PLAN TO ITS EMPLOYEES.13
(3) Prohibition against misinformation. A PHARMACY BENEFIT14
MANAGER OR HEALTH-CARE CONSULTANT SHALL NOT KNOWINGLY MAKE15
OR DISSEMINATE FALSE OR MISLEADING STATEMENTS OR CLAIMS TO AN16
EMPLOYER, SELF -INSURED EMPLOYER , OR POLICYHOLDER ABOUT THE17
LEGALITY OR SAFETY OF A LAWFUL PRESCRIPTION DRUG OPTIMIZED18
SOURCING PROGRAM ESTABLISHED BY A PHARMACY STEWARDSHIP19
PROGRAM.20
(4) Disclosure requirements.21
(a) U PON WRITTEN REQUEST BY A SELF -INSURED EMPLOYER, A22
PHARMACY BENEFIT MANAGER OR HEALTH -CARE CONSULTANT SHALL23
PROVIDE DETAILED COST INFORMATION FOR EACH PRESCRIPTION DRUG24
DISPENSED UNDER THE PLAN, INCLUDING:25
(I) TOTAL DRUG COST PER CLAIM;26
(II) TOTAL MEMBER-PAID PORTION PER CLAIM;27
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(III) T OTAL PLAN -PAID, SPONSOR -PAID, OR EMPLOYER -PAID1
PORTION PER CLAIM; AND2
(IV) NATIONAL DRUG CODE, QUANTITY, STRENGTH, AND DAYS OF3
SUPPLY.4
(b) A PHARMACY BENEFIT MANAGER OR HEALTH -CARE5
CONSULTANT THAT PROVIDES COST INFORMATION PURSUANT TO6
SUBSECTION (4)(a) OF THIS SECTION SHALL NOT WITHHOLD , EDIT , OR7
REDACT THE INFORMATION THAT THE PHARMACY BENEFIT MANAGER OR8
HEALTH-CARE CONSULTANT PROVIDES.9
(5) Self-insured employer rights. T HIS SECTION DOES NOT10
RESTRICT OR LIMIT THE RIGHT OF A SELF -INSURED EMPLOYER TO11
PURCHASE PRESCRIPTION DRUGS THROUGH A LAWFUL PRESCRIPTION DRUG12
OPTIMIZED SOURCING PROGRAM. A SELF-INSURED EMPLOYER RETAINS THE13
RIGHT TO CONTRACT FOR ANY LAWFUL PRESCRIPTION DRUG OPTIMIZED14
SOURCING PROGRAM, INCLUDING PERSONAL-USE IMPORTATION PROGRAMS15
PERMITTED UNDER FEDERAL LAW, FOR DRUGS USED BY THE SELF-INSURED16
EMPLOYER'S HEALTH BENEFIT PLAN'S COVERED PERSONS.17
(6) Pharmacy stewardship programs.18
(a) A PHARMACY STEWARDSHIP PROGRAM THAT IS DESIGNED TO19
IMPROVE THE COST -EFFECTIVENESS OF MEDICATION USE WHILE20
MAINTAINING PATIENT SAFETY IS RECOGNIZED AS AN EFFECTIVE21
COST-CONTAINMENT TOOL.22
(b) PHARMACY STEWARDSHIP PROGRAMS AND PRESCRIPTION DRUG23
OPTIMIZED SOURCING PROGRAMS ARE AUTHORIZED BY STATE LAW WHEN24
IMPLEMENTED IN COMPLIANCE WITH FEDERAL LAW AND WITH THIS25
SECTION. SUCH AUTHORIZED PROGRAMS INCLUDE PROGRAMS FOR26
IMPORTING PRESCRIPTION DRUGS WHEN AUTHORIZED UNDER FEDERAL27
HB26-1056-5-
LAW.1
(c) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CREATE A2
NEW INSURANCE PRODUCT OR MANDATORY COVERAGE.3
(7) No state cost or self-insured employer mandate.4
(a) THIS SECTION DOES NOT:5
(I) CREATE A FISCAL REQUIREMENT FOR ANY STATE AGENCY OR AN6
APPROPRIATION FROM THE GENERAL FUND;7
(II) R EQUIRE AN EMPLOYER TO ADOPT OR PARTICIPATE IN A8
PRESCRIPTION DRUG OPTIMIZED SOURCING PROGRAM OR PHARMACY9
STEWARDSHIP PROGRAM; OR10
(III) REQUIRE THAT RESOURCES BE EXPENDED AS A RESULT OF THIS11
SECTION.12
(b) THE COMMISSIONER SHALL IMPLEMENT THIS SECTION WITHIN13
EXISTING APPROPRIATIONS.14
(8) Enforcement. T HE COMMISSIONER SHALL ENFORCE THIS15
SECTION WITH RESPECT TO A PBM OR HEALTH-CARE CONSULTANT THAT16
ADMINISTERS OR MANAGES PRESCRIPTION DRUG BENEFITS FOR A HEALTH17
BENEFIT PLAN . A VIOLATION OF THIS SECTION BY A PBM OR A18
HEALTH-CARE CONSULTANT IS AN UNFAIR METHOD OF COMPETITION AND19
AN UNFAIR OR DECEPTIVE ACT OR PRACTICE IN THE BUSINESS OF20
INSURANCE PURSUANT TO SECTION 10-3-1104 (1)(uu). EACH DAY DURING21
WHICH A VIOLATION CONTINUES CONSTITUTES A SEPARATE VIOLATION.22
SECTION 3. In Colorado Revised Statutes, 10-3-1104, add23
(1)(uu) as follows:24
10-3-1104. Unfair methods of competition - unfair or deceptive25
practices - rules - definitions. (1) The following are defined as unfair26
methods of competition and unfair or deceptive acts or practices in the27
HB26-1056-6-
business of insurance:1
(uu) VIOLATING SECTION 10-16-171.2
SECTION 4. Act subject to petition - effective date -3
applicability. (1) This act takes effect at 12:01 a.m. on the day following4
the expiration of the ninety-day period after final adjournment of the5
general assembly (August 12, 2026, if adjournment sine die is on May 13,6
2026); except that, if a referendum petition is filed pursuant to section 17
(3) of article V of the state constitution against this act or an item, section,8
or part of this act within such period, then the act, item, section, or part9
will not take effect unless approved by the people at the general election10
to be held in November 2026 and, in such case, will take effect on the11
date of the official declaration of the vote thereon by the governor.12
(2) This act applies to conduct or omissions occurring on or after13
the applicable effective date of this act.14
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