{"id":14086,"date":"2018-03-14T21:26:17","date_gmt":"2018-03-14T21:26:17","guid":{"rendered":"http:\/\/arknews.org\/?p=14086"},"modified":"2018-03-14T21:26:17","modified_gmt":"2018-03-14T21:26:17","slug":"house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers","status":"publish","type":"post","link":"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/","title":{"rendered":"House and Senate pass legislation to rein in pharmacy benefit managers"},"content":{"rendered":"<figure id=\"attachment_1077\" aria-describedby=\"caption-attachment-1077\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1077\" src=\"http:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/DSC0392-600x787.jpg\" alt=\"\" width=\"600\" height=\"787\" srcset=\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/DSC0392-600x787.jpg 600w, https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/DSC0392-768x1008.jpg 768w, https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/DSC0392-1170x1535.jpg 1170w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-1077\" class=\"wp-caption-text\">SEN. BART HESTER (file photo)<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p><span style=\"\">On Wednesday, both chambers of the Arkansas legislature approved identical versions of a bill to regulate pharmacy benefit managers, the powerful health care companies at the center of a dispute over cuts in reimbursements paid to pharmacists. Governor Hutchinson has committed to signing the legislation, which sponsors say is likely the first of its kind in the nation.<\/span><\/p>\n<p><span style=\"\">Senate Bill 2 passed in a floor vote of 30-2, with all members voting; the 35-seat Senate currently has three vacancies. House Bill 1010 passed its chamber, which has one vacancy, by a vote of 92-2, with two members voting \u201cpresent\u201d and three not voting. <\/span><\/p>\n<p><span style=\"\">The General Assembly is meeting for a three-day special session that was called by Hutchinson on Monday to address the PBM issue and a grab bag of other bills. The session was expected to wrap up on Thursday.<\/span><\/p>\n<p><span style=\"\">SB 2 and HB 1010 enjoy broad bipartisan support, but a few conservatives see the legislation as a betrayal of free market principles. Sen. Bart Hester (R-Cave Springs) was one of the two \u201cno\u201d votes in the Senate. <\/span><\/p>\n<p><span style=\"\">\u201cI think there\u2019s no arguing that the independent pharmacies have experienced some tough times here,\u201d Hester said Wednesday. \u201cBut at the end of the day, we as Republicans run on less government, less regulation, less licensures, and this bill is the opposite of all of those.\u201d<\/span><\/p>\n<p><span style=\"\">PBMs are middleman companies hired by insurers to negotiate pharmaceutical prices with drug manufacturers and handle pharmacy claims. Since January, Arkansas\u2019s independent pharmacists have complained of sharp cuts in reimbursements paid by CVS Caremark, which is the PBM for the state\u2019s largest insurance carrier, Arkansas Blue Cross and Blue Shield. The Arkansas Pharmacists Association says reimbursements for generic drugs have dropped so low that some independent drugstores may have to close their doors.<\/span><\/p>\n<p><span style=\"\">Sen. Ronald Caldwell (R-Wynne), the lead sponsor of SB 2, said in a committee Wednesday morning the bill would give the state insurance commissioner the power to \u201coversee and govern the business practices of PBMs operating in Arkansas.\u201d That would include ensuring that PBMs reimburse pharmacies at a rate sufficient to ensure \u201cnetwork adequacy\u201d even in rural areas of the state. <\/span><\/p>\n<p><span style=\"\">\u201cThis does not set a floor or a ceiling for payment,\u201d Caldwell said Wednesday. \u201cThere\u2019s nothing in this bill that sets a price. It simply says that a PBM network will not be adequate if \u2026 [they do] not provide fair and reasonable reimbursements.\u201d The Arkansas Insurance Department will issue licenses to PBMs and develop rules and regulations to enforce the law by September, the bill states. <\/span><\/p>\n<p><span style=\"\">Hester said it was not the business of state government to guarantee profits for pharmacists.<\/span><\/p>\n<p><span style=\"\">\u201cLook, I just think that the free market is particularly brutal sometimes, and I think they\u2019re experiencing part of that,\u201d Hester said. Insurers use PBMs to handle pharmacy claims because they believe the companies are effective at keeping costs down, he added. \u201cAnd when costs are lower, the consumer is winning.\u201d<\/span><\/p>\n<p><span style=\"\">\u201cI mean, Toys 'R' Us is going out of business,\u201d he said. \u201cShould we have a special session to save the Toys 'R' Us because the free market is slaughtering them? No. Around Arkansas, we applaud Walmart; we call them a great business success. We love them because we allowed the free market to work. We didn\u2019t call a special session 35 years ago to protect the mom and pop stores. \u2026 The market is just changing.\u201d<\/span><\/p>\n<p><span style=\"\">Asked why almost all of his fellow Republicans supported a bill to create new regulations, the senator said it was a matter of politics. \u201cI just think the pressure is great \u2026 when you\u2019ve got your local pharmacist calling saying, \u2018This is going to put me out of business,\u201d Hester said. He also questioned whether pharmacists are overstating their level of pain. <\/span><\/p>\n<p><span style=\"\">\u201cI\u2019ve been down here for five years, and for five years I\u2019ve heard, \u2018My local pharmacy is going out of business.\u2019 At some point, the \u2026 wolf story is no longer valid to me.\u201d<\/span><\/p>\n<div id=\"StoryLayout\" class=\"SpanningFeature ContentDefault home_feature\">\n<div id=\"storyBody\" class=\"page1 home_feature\"><em>This reporting is courtesy of the Arkansas Nonprofit News Network, an independent, nonpartisan news project dedicated to producing journalism that matters to Arkansans. Find out more at arknews.org.<\/em><\/div>\n<\/div>\n<div id=\"ToolBarHorizontal\" class=\"SpanningFeature ContentDefault \">\n<div>\n<div class=\"l0 first\">\n<div id=\"FacebookShareButtonCount\" class=\"MicroComponent ToolBarHorizontal \">\n<div class=\"fb-share-button fb_iframe_widget\" data-type=\"button_count\" data-href=\"https:\/\/www.arktimes.com\/arkansas\/committee-approves-bill-to-regulate-pharmacy-benefit-managers-over-objections-of-conservative-group\/Content?oid=15633990\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; On Wednesday, both chambers of the Arkansas legislature approved identical versions of a bill to regulate pharmacy benefit managers, the powerful health care companies at the center of a dispute over cuts in reimbursements paid to pharmacists. Governor Hutchinson has committed to signing the legislation, which sponsors say is likely the first of its [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,111],"tags":[],"class_list":["post-14086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arkansas-general-assembly","category-health-care"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>House and Senate pass legislation to rein in pharmacy benefit managers - Arkansas Nonprofit News Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"House and Senate pass legislation to rein in pharmacy benefit managers - Arkansas Nonprofit News Network\" \/>\n<meta property=\"og:description\" content=\"&nbsp; On Wednesday, both chambers of the Arkansas legislature approved identical versions of a bill to regulate pharmacy benefit managers, the powerful health care companies at the center of a dispute over cuts in reimbursements paid to pharmacists. Governor Hutchinson has committed to signing the legislation, which sponsors say is likely the first of its [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/\" \/>\n<meta property=\"og:site_name\" content=\"Arkansas Nonprofit News Network\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-14T21:26:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/arknews.org\/wp-content\/uploads\/2017\/03\/bart-hester-3.jpg?fit=1000%2C1385\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"1385\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Lindsey_millar\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lindsey Millar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/arknews.org\/#organization\",\"name\":\"Arkansas Nonprofit News Network\",\"url\":\"https:\/\/arknews.org\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/arknews.org\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/arknews.org\/wp-content\/uploads\/2021\/04\/annn_logo.png\",\"contentUrl\":\"https:\/\/arknews.org\/wp-content\/uploads\/2021\/04\/annn_logo.png\",\"width\":1200,\"height\":900,\"caption\":\"Arkansas Nonprofit News Network\"},\"image\":{\"@id\":\"https:\/\/arknews.org\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/arknews.org\/#website\",\"url\":\"https:\/\/arknews.org\/\",\"name\":\"Arkansas Nonprofit News Network\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/arknews.org\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/arknews.org\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/03\/bart-hester-3.jpg\",\"contentUrl\":\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/03\/bart-hester-3.jpg\",\"width\":1000,\"height\":1385},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/#webpage\",\"url\":\"https:\/\/arknews.org\/index.php\/2018\/03\/14\/house-and-senate-pass-legislation-to-rein-in-pharmacy-benefit-managers\/\",\"name\":\"House and Senate pass legislation to rein in pharmacy benefit managers - 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