DIRECTING THE STATE EMPLOYEE BENEFITS COMMITTEE AND THE SECRETARY OF HUMAN RESOURCES TO ENGAGE WITH INDEPENDENT CONSULTANTS AND OTHER SUPPLY CHAIN TACTICS FOR COST CONTAINMENT OF PRESCRIPTION DRUGS FOR STATE EMPLOYEES AND RETIREES’ INSURANCE PROGRAMS.

Plain English Breakdown

The official source material does not provide specific details about funding or penalties for non-compliance.

Directing State Agencies to Lower Prescription Drug Costs

This resolution directs the State Employee Benefits Committee and the Secretary of Human Resources to use specific strategies, including drug cost transparency and supply chain tactics like reverse auctions, to reduce prescription drug costs for state employees and retirees.

What This Bill Does

• Requires the SEBC to consider strategies such as drug cost transparency and forming a Pharmacy and Therapeutics Committee.
• Encourages the SEBC to use other supply chain tactics including reverse auctions or transparency committees.
• Requests PBMs to disclose their administrative expenses for all pharmaceutical drugs.
• Directs PBMs to bid based on lowest pricing sources, not average wholesale price.
• Requires written agreements between the SEBC and PBMs to include access to agreements between PBMs and pharmaceutical companies.
• Encourages the formation of intra-state compacts with other states.
• Asks the SEBC to pay similar prices for drugs as Medicare does when possible.

Who It Names or Affects

• State employees
• Retirees of state programs
• Pharmacy Benefit Managers (PBMs)
• The State Employee Benefits Committee (SEBC)

Terms To Know

Pharmacy and Therapeutics Committee

A committee that reviews the use of medications to ensure they are safe, effective, and cost-effective.

Reverse Auction

A type of auction where sellers compete by offering lower prices for goods or services.

Limits and Unknowns

• The bill does not specify how the SEBC will fund these initiatives.
• It is unclear what actions will be taken if PBMs do not comply with the requirements set forth in this resolution.
• There are no penalties outlined for non-compliance by PBMs.

Official Summary Text

DIRECTING THE STATE EMPLOYEE BENEFITS COMMITTEE AND THE SECRETARY OF HUMAN RESOURCES TO ENGAGE WITH INDEPENDENT CONSULTANTS AND OTHER SUPPLY CHAIN TACTICS FOR COST CONTAINMENT OF PRESCRIPTION DRUGS FOR STATE EMPLOYEES AND RETIREES’ INSURANCE PROGRAMS.
This Joint Resolution directs the State Employees Benefits Committee (SEBC) to utilize specific strategies and policies when interacting and contracting with Pharmacy Benefit Managers (PBM) in order to achieve lower cost pharacuetical drug benefit plans for the State.

The Resolution requests the SEBC consider all of the following:

1. Drug cost transparency.
2. Adoption of a Pharmacy and Therapeutics Committee.
3. Any other supply chain tactics such as a reverse auction or transparency committee.
4. Formation of intra-state compacts with other states.
5. Paying similar prices for drugs paid by Medicare.
6. Require PBMs disclose administrative expenses for all pharmaceutical drugs.
7. Require PBMs to bid based on lowest pricing sources, not average wholesale price.
8. Require that all written agreements between the SEBC and PBMs that the SEBC is entitled to see the agreements between PBMs and pharmaceutical companies when those agreements the drug plans contracted on behalf of the SEBC.
9. Consider use of audits when the SEBC believes it should be entitled to information on the basis of transparency or clarity.

The Resolution further directs the SEBC to prepare a report by December 1, 2025, to summarize any difficulties in implementing any of these policies.