PRIOR PRINTER'S NO. 2833
PRINTER'S NO. 3317
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1993
Session of
2024
INTRODUCED BY BENHAM, GAYDOS, KENYATTA, BURGOS, HARKINS,
DONAHUE, MADDEN, MAJOR, SANCHEZ, CERRATO, HILL-EVANS,
D'ORSIE, CIRESI, GREEN, DALEY, MATZIE, SOLOMON, MIHALEK,
ECKER, McNEILL, SCHLOSSBERG, PICKETT, PISCIOTTANO, WEBSTER,
HOHENSTEIN, KRUEGER, BOROWSKI, NEILSON, FEE, KIM, KHAN,
BERNSTINE, MENTZER, O'MARA, FLEMING, GROVE, MULLINS,
KOSIEROWSKI, ISAACSON, HEFFLEY, OBERLANDER, ARMANINI,
GREGORY, E. NELSON, STAATS, WAXMAN, STEELE, SALISBURY,
KINKEAD, McANDREW, KAUFFMAN, GIRAL, DELOZIER, FRITZ,
MUSTELLO, POWELL, D. WILLIAMS, HOGAN, CAUSER, FRIEL, SIEGEL,
WARNER AND COOPER, APRIL 3, 2024
AS REPORTED FROM COMMITTEE ON HEALTH, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 12, 2024
AN ACT
Amending the act of November 21, 2016 (P.L.1318, No.169),
entitled "An act providing for pharmacy audit procedures, for
registration of pharmacy benefits managers and auditing
entities, for maximum allowable cost transparency and for
prescription drugs reimbursed under the PACE and PACENET
program; and making related repeals," further providing for
title of act; in preliminary provisions, further providing
for short title and for definitions; in pharmacy audits,
further providing for limitations; and IN REGISTRATION,
FURTHER PROVIDING FOR PBM AND AUDITING ENTITY REGISTRATION;
providing for pharmacy benefits manager contract requirements
and prohibited acts.; IN PBM COST TRANSPARENCY REQUIREMENTS,
PROVIDING FOR TRANSPARENCY REPORT REQUIRED; AND, IN
ENFORCEMENTS, FURTHER PROVIDING FOR SCOPE OF ENFORCEMENT
AUTHORITY AND PROVIDING FOR REGULATIONS AND FOR CONSTRUCTION.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title and section 101 of the act of November
21, 2016 (P.L.1318, No.169), known as the Pharmacy Audit
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Integrity and Transparency Act, are amended to read:
AN ACT
Providing for pharmacy audit procedures, for registration of
pharmacy benefits managers and auditing entities, for maximum
allowable cost transparency and for prescription drugs
reimbursed under the PACE and PACENET program and for
pharmacy benefit managers contract requirements and
prohibited activities; and making related repeals.
Section 101. Short title.
This act shall be known and may be cited as the [Pharmacy
Audit Integrity and Transparency] Community Pharmacy Protection
PHARMACY BENEFIT REFORM Act.
Section 2. Section 103 of the act is amended by adding
definitions to read:
SECTION 2. THE DEFINITIONS OF "COVERED ENTITY" AND "HEALTH
INSURANCE POLICY" IN SECTION 103 OF THE ACT ARE AMENDED AND THE
SECTION IS AMENDED BY ADDING DEFINITIONS TO READ:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
" Brand effective rate." The reimbursement rate paid to the
pharmacy based on a percentage of the average wholesale cost for
brand-name drugs dispensed by the pharmacy under the contract
with the pharmacy benefit manager.
* * *
"COVERED ENTITY." A CONTRACT HOLDER OR POLICY HOLDER
PROVIDING PHARMACY BENEFITS TO A COVERED INDIVIDUAL UNDER A
HEALTH [INSURANCE POLICY] BENEFIT PLAN PURSUANT TO A CONTRACT
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ADMINISTERED BY A PHARMACY BENEFIT MANAGER.
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"Effective rate contract." A contract that sets a specific
discount rate for all prescriptions filled by a member pharmacy
during the term of the contract.
* * *
"Generic effective rate." The reimbursement rate paid to the
pharmacy based on a percentage of the average wholesale cost for
generic drugs dispensed by the pharmacy under the contract with
the pharmacy benefit manager.
* * *
"Patient steering." One of the following:
(1) When a pharmacy benefit manager directs a patient to
use a preferred pharmacy through mandatory mail order
requirements or the creation by the PBM of a restricted
network that consists only of pharmacies approved by the PBM.
(2) The use of co-pay differentials between PBM-
affiliated pharmacies and nonaffiliated pharmacies.
* * *
"Spread pricing." An act of a pharmacy benefit manager
reimbursing a pharmacy for a prescription and then billing an
insurer or an employer that provides health insurance at a
higher price for the same prescription.
"HEALTH BENEFIT PLAN." A POLICY, CONTRACT, CERTIFICATE OR
AGREEMENT ENTERED INTO, OFFERED, ISSUED OR RENEWED BY A HEALTH
INSURER TO PROVIDE, DELIVER, ARRANGE FOR, PAY FOR OR REIMBURSE
ANY OF THE COSTS OF PHYSICAL, MENTAL OR BEHAVIORAL HEALTH CARE
SERVICES. THE TERM DOES NOT INCLUDE MEDICARE SUPPLEMENT OR
CIVILIAN HEALTH AND MEDICAL PROGRAM OF THE UNIFORMED SERVICES
(CHAMPUS) SUPPLEMENT INSURANCE.
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["HEALTH INSURANCE POLICY." A POLICY, SUBSCRIBER CONTRACT,
CERTIFICATE OR PLAN THAT PROVIDES PRESCRIPTION DRUG COVERAGE.
THE TERM INCLUDES BOTH COMPREHENSIVE AND LIMITED BENEFIT HEALTH
POLICIES.]
* * *
"LICENSEE." AN ENTITY SUBJECT TO OVERSIGHT OF THE DEPARTMENT
UNDER THIS ACT. THE TERM INCLUDES:
(1) AN AUDITING ENTITY.
(2) A HEALTH INSURER.
(3) A PHARMACY BENEFIT MANAGER.
* * *
"MONETARY ADVANTAGE OR PENALTY." AN INCENTIVE OR DETERRENT
IMPOSED UNDER A HEALTH BENEFIT PLAN THAT AFFECTS A BENEFICIARY'S
CHOICE OF PHARMACY. THE TERM INCLUDES, BUT IS NOT LIMITED TO, A
HIGHER COPAYMENT, A WAIVER OF A COPAYMENT, A REDUCTION IN
REIMBURSEMENT FOR SERVICES, A REQUIREMENT OR LIMIT ON THE NUMBER
OF DAYS OF A DRUG SUPPLY FOR WHICH REIMBURSEMENT WILL BE ALLOWED
OR A PROMOTION OF ONE PARTICIPATING PHARMACY OVER ANOTHER BY
THESE METHODS.
* * *
"SPREAD PRICING." A MODEL OF PRESCRIPTION DRUG PRICING IN
WHICH THE PBM CHARGES A HEALTH BENEFIT PLAN OR HEALTH INSURER A
CONTRACTED PRICE FOR PRESCRIPTION DRUGS AND THE CONTRACTED PRICE
FOR THE PRESCRIPTION DRUGS DIFFERS FROM THE AMOUNT THE PBM
DIRECTLY OR INDIRECTLY PAYS THE PHARMACIST OR PHARMACY FOR
PRESCRIPTION DRUGS AND RELATED PHARMACIST SERVICES.
Section 3. Section 303 of the act is amended by adding a
subsection to read:
Section 303. Limitations.
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* * *
(c) Scrivener error.--A scrivener SCRIVENER'S ERROR.--A
SCRIVENER'S error made by a pharmacy not attributed to fraud,
waste or abuse that is discovered during an audit of the
pharmacy by the PBM shall result in the PBM recouping the
dispensing fee for that particular transaction, not the entire
amount of FOR the medication received by the patient.
SECTION 4. SECTION 501(B)(3) OF THE ACT IS AMENDED TO READ:
SECTION 501. PBM AND AUDITING ENTITY REGISTRATION.
* * *
(B) TERM AND FEE.--
* * *
(3) THE AMOUNT OF THE INITIAL APPLICATION FEE AND
RENEWAL APPLICATION FEE SHALL BE SUFFICIENT TO FUND THE
DEPARTMENT'S DUTIES IN RELATION TO ITS RESPONSIBILITIES UNDER
THIS CHAPTER BUT MAY NOT EXCEED [$1,000] $10,000.
* * *
Section 4 5. The act is amended by adding a chapter to read:
CHAPTER 6
PHARMACY BENEFITS MANAGER CONTRACT
REQUIREMENTS AND PROHIBITED ACTS
Section 601. Contract provisions.
A contract between a pharmacy benefit manager PBM or a
designee of the pharmacy benefit manager PBM and a pharmacy may
not:
(1) Require participation in the PBM's network
contingent on the pharmacy signing either an effective rate
contract or a contract based on the National Average Drug
Acquisition Cost guidelines.
(2) Include provisions allowing for retroactive
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recoupment of money paid to a pharmacy by the PBM, unless
both parties agree to that provision.
(3) Base reimbursement upon general effective rate or
the brand effective rate as a condition of entering a
network, unless both parties agree to that provision. Any
additional fees must be disclosed and applied at the time of
the adjudication of the claim. Fees may include:
(i) Transaction fees.
(ii) Chargebacks due to recalculation of the cost of
the ingredients used in a prescription drug.
(iii) Adjustments in the general effective rate,
brand effective rates or direct and indirect remuneration
fees made by the PBM.
Section 602. Spread pricing participation prohibited.
A pharmacy benefit manager may not conduct or participate in
spread pricing.
Section 603. Patient steering prohibited.
A pharmacy benefit manager may not conduct or participate in
patient steering.
Section 604. Duties of the department.
The department shall:
(1) Develop a process for receiving, hearing and
resolving complaints a pharmacy filed against a PBM.
(2) Have the ability to set fixed amounts for PBM claim
processing fees and administrative fees.
(3) Develop a Statewide National Average Drug
Acquisition Cost guideline that uses wholesale pricing based
on manufacturer's invoices of those manufacturers who ship
drugs to this Commonwealth.
Section 605. Duties of pharmacy benefit managers.
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Pharmacy benefit managers shall:
(1) Approve a request from a pharmacy to be a member of
the PBM's network within 30 days of the initial request to
join the network.
(2) Provide a dedicated telephone number and email
address for handling network admission requests.
Section 606. PBM for State Employee Health Plan.
A PBM hired for the State Employee Health Plan shall have a
transparent reimbursement methodology based on the National
Average Drug Acquisition Cost guidelines developed under
section 604(3) and a dispensing fee equal to or greater than the
maximum prevailing fee for service or PACE rate in this
Commonwealth.
Section 607. Reports by PBM.
A PBM shall report to the department the amount of rebates
and payments received from drug manufacturers and how the
rebates and payments were distributed by the PBM.
A HEALTH BENEFIT PLAN, HEALTH INSURER OR PBM CONTRACTING WITH
A HEALTH BENEFIT PLAN OR HEALTH INSURER MAY NOT UTILIZE ANY FORM
OF SPREAD PRICING IN THIS COMMONWEALTH.
SECTION 603. PATIENT STEERING PROHIBITED.
A HEALTH BENEFIT PLAN, HEALTH INSURER OR PBM CONTRACTING WITH
A HEALTH BENEFIT PLAN OR HEALTH INSURER MAY NOT:
(1) REQUIRE A COVERED INDIVIDUAL, AS A CONDITION OF
PAYMENT OR REIMBURSEMENT, TO PURCHASE PHARMACIST SERVICES,
INCLUDING, BUT NOT LIMITED TO, PRESCRIPTION DRUGS,
EXCLUSIVELY THROUGH A MAIL-ORDER PHARMACY OR PBM AFFILIATE.
(2) PROHIBIT OR LIMIT ANY COVERED INDIVIDUAL FROM
SELECTING AN IN-NETWORK PHARMACY OR IN-NETWORK PHARMACIST OF
THE COVERED INDIVIDUAL'S CHOICE WHO MEETS AND AGREES TO THE
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TERMS AND CONDITIONS, INCLUDING REIMBURSEMENTS, IN THE PBM'S
CONTRACT.
(3) IMPOSE A MONETARY ADVANTAGE OR PENALTY UNDER A
HEALTH BENEFIT PLAN THAT AFFECTS A COVERED INDIVIDUAL'S
CHOICE OF PHARMACY AMONG THOSE PHARMACIES THAT HAVE CHOSEN TO
CONTRACT WITH THE PBM UNDER THE SAME TERMS AND CONDITIONS,
INCLUDING REIMBURSEMENTS.
(4) USE A COVERED INDIVIDUAL'S PHARMACY SERVICES DATA
COLLECTED UNDER CLAIMS PROCESSING SERVICES FOR THE PURPOSE OF
SOLICITING, MARKETING OR REFERRING THE COVERED INDIVIDUAL TO
A MAIL-ORDER PHARMACY OR PBM AFFILIATE, EXCEPT THAT A HEALTH
BENEFIT PLAN OR HEALTH INSURER MAY USE PHARMACY SERVICES DATA
FOR THE PURPOSE OF ADMINISTERING THE HEALTH BENEFIT PLAN.
SECTION 604. CLAWBACKS PROHIBITED.
(A) GENERAL RULE.--A HEALTH BENEFIT PLAN, HEALTH INSURER OR
PBM CONTRACTING WITH A HEALTH BENEFIT PLAN OR HEALTH INSURER MAY
NOT REQUIRE COST-SHARING IN AN AMOUNT OR DIRECT A PHARMACY TO
COLLECT COST-SHARING IN AN AMOUNT, GREATER THAN THE LESSER OF
EITHER OF THE FOLLOWING FROM AN INDIVIDUAL PURCHASING A
PRESCRIPTION DRUG:
(1) THE AMOUNT AN INDIVIDUAL WOULD PAY FOR THE
PRESCRIPTION DRUG IF THE PRESCRIPTION DRUG WERE TO BE
PURCHASED WITHOUT COVERAGE UNDER A HEALTH BENEFIT PLAN.
(2) THE NET REIMBURSEMENT PAID TO THE PHARMACY FOR THE
PRESCRIPTION DRUG BY THE HEALTH INSURER OR PBM.
(B) DUTY WHEN FILLING A PRESCRIPTION.--WHEN FILLING A
PRESCRIPTION, IF A PHARMACIST, PHARMACY INTERN OR TECHNICIAN
DETERMINES THAT INFORMATION INDICATING THAT THE COST-SHARING
AMOUNT REQUIRED BY THE PATIENT'S HEALTH BENEFIT PLAN EXCEEDS THE
AMOUNT THAT MAY OTHERWISE BE CHARGED FOR THE SAME PRESCRIPTION
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DRUG, BOTH OF THE FOLLOWING SHALL APPLY:
(1) THE PHARMACIST, PHARMACY INTERN OR TECHNICIAN SHALL
NOTIFY THE PATIENT.
(2) THE PATIENT MAY NOT BE CHARGED THE HIGHER AMOUNT.
SECTION 605. NETWORK ADEQUACY.
(A) GENERAL RULE.--A PBM SHALL ESTABLISH A REASONABLY
ADEQUATE AND ACCESSIBLE PBM NETWORK FOR THE PROVISION OF
PRESCRIPTION DRUGS UNDER A HEALTH BENEFIT PLAN THAT SHALL
PROVIDE FOR CONVENIENT PATIENT ACCESS TO PHARMACIES WITHIN A
REASONABLE DISTANCE FROM A PATIENT'S RESIDENCE IN ACCORDANCE
WITH THE FOLLOWING REQUIREMENTS:
(1) A MAIL-ORDER PHARMACY SHALL NOT BE INCLUDED IN THE
CALCULATIONS DETERMINING PBM NETWORK ADEQUACY.
(2) THE NETWORK MAY NOT BE LIMITED TO AFFILIATED
PHARMACIES ONLY.
(3) THE NETWORK SHALL MEET OR EXCEED THE REQUIREMENTS OF
42 CFR 423.120(A)(1) (RELATING TO ACCESS TO COVERED PART D
DRUGS) OR SUCCESSOR REGULATION.
(B) REPORT REQUIREMENT.--BEGINNING APRIL 1, 2026, AND
ANNUALLY THEREAFTER, A PBM SHALL FILE WITH THE DEPARTMENT A
NETWORK ADEQUACY REPORT DESCRIBING THE PBM NETWORK AND THE PBM
NETWORK'S ACCESSIBILITY IN THIS COMMONWEALTH ON A FORM
PRESCRIBED BY THE DEPARTMENT, WHICH SHALL BE POSTED ON THE
DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.
SECTION 606. REGULATIONS.
THE DEPARTMENT MAY PROMULGATE REGULATIONS AS NECESSARY AND
APPROPRIATE TO CARRY OUT THIS CHAPTER.
SECTION 607. APPLICABILITY.
IF A CONTRACT IS IN EFFECT ON THE EFFECTIVE DATE OF THIS
SECTION THAT CONFLICTS WITH THIS CHAPTER, THE PROVISION OF THIS
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CHAPTER SHALL NOT APPLY UNTIL THE DATE THE CONTRACT IS AMENDED,
EXTENDED OR RENEWED.
SECTION 6. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 703.1. TRANSPARENCY REPORT REQUIRED.
(A) GENERAL RULE.--BEGINNING JULY 1, 2026, AND ANNUALLY
THEREAFTER, EACH LICENSED PBM SHALL SUBMIT A TRANSPARENCY REPORT
CONTAINING DATA FROM THE PRIOR CALENDAR YEAR TO THE DEPARTMENT.
THE TRANSPARENCY REPORT SHALL CONTAIN THE FOLLOWING INFORMATION:
(1) THE AGGREGATE AMOUNT OF ALL REBATES THAT THE PBM
RECEIVED FROM ALL PHARMACEUTICAL MANUFACTURERS FOR ALL HEALTH
BENEFIT PLAN AND HEALTH INSURER CLIENTS AND FOR EACH HEALTH
BENEFIT PLAN OR HEALTH INSURER CLIENT.
(2) THE AGGREGATE ADMINISTRATIVE FEES THAT THE PBM
RECEIVED FROM ALL MANUFACTURERS FOR ALL HEALTH BENEFIT PLAN
AND HEALTH INSURER CLIENTS AND FOR EACH HEALTH BENEFIT PLAN
OR HEALTH INSURER CLIENT.
(3) THE AGGREGATE RETAINED REBATES THAT THE PBM RECEIVED
FROM ALL PHARMACEUTICAL MANUFACTURERS AND DID NOT PASS
THROUGH TO HEALTH BENEFIT PLAN OR HEALTH INSURER CLIENTS.
(4) THE HIGHEST, LOWEST AND MEAN AGGREGATE RETAINED
REBATE PERCENTAGE FOR ALL HEALTH BENEFIT PLAN OR HEALTH
INSURER CLIENTS AND FOR EACH HEALTH BENEFIT PLAN OR HEALTH
INSURER CLIENT.
(5) FOR A PBM THAT CONTROLS OR IS AFFILIATED WITH A
PHARMACY, A DESCRIPTION OF ANY DIFFERENCES BETWEEN WHAT THE
PBM REIMBURSES OR CHARGES AFFILIATED AND NONAFFILIATED
PHARMACIES.
(B) PUBLICATION.--WITHIN 60 DAYS OF RECEIPT, THE DEPARTMENT
SHALL PUBLISH THE TRANSPARENCY REPORT UNDER THIS SECTION ON THE
DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE IN A FORM THAT
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DOES NOT DISCLOSE THE IDENTITY OF A SPECIFIC HEALTH BENEFIT PLAN
OR HEALTH INSURER, THE PRICES CHARGED FOR SPECIFIC DRUGS OR
CLASSES OF DRUGS OR THE AMOUNT OF ANY REBATES PROVIDED FOR
SPECIFIC DRUGS OR CLASSES OF DRUGS.
(C) ADDITIONAL CATEGORIES.--THE DEPARTMENT MAY, BY
REGULATION, DIRECT PBMS TO INCLUDE ADDITIONAL CATEGORIES FOR
AGGREGATED DATA FROM HEALTH BENEFIT PLAN OR HEALTH INSURER
CLIENTS IN THE ANNUAL TRANSPARENCY REPORT SUBMITTED UNDER THIS
SECTION.
SECTION 7. SECTION 901 OF THE ACT IS AMENDED TO READ:
SECTION 901. SCOPE OF ENFORCEMENT AUTHORITY.
(A) SCOPE.--THE DEPARTMENT MAY INVESTIGATE AND ENFORCE THE
PROVISIONS OF THIS ACT ONLY INSOFAR AS THE ACTIONS OR INACTIONS
BEING INVESTIGATED RELATE TO PRESCRIPTION DRUG COVERAGE UNDER A
HEALTH [INSURANCE POLICY] BENEFIT PLAN.
[(B) REMEDY.--ACTIONS OR INACTIONS WITHIN THE SCOPE OF THE
DEPARTMENT'S INVESTIGATIVE AND ENFORCEMENT AUTHORITY UNDER
SUBSECTION (A) FOUND TO VIOLATE THIS ACT CONSTITUTE "UNFAIR
METHODS OF COMPETITION" AND "UNFAIR OR DECEPTIVE ACTS OR
PRACTICES" WITHIN THE MEANING OF SECTION 5 OF THE ACT OF JULY
22, 1974 (P.L.589, NO.205), KNOWN AS THE UNFAIR INSURANCE
PRACTICES ACT. A PROCEEDING UNDER THIS SECTION SHALL BE
CONDUCTED IN ACCORDANCE WITH 2 PA.C.S. CH. 5 SUBCH. A (RELATING
TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES).]
(B.1) EXAMINATION AND ACCESS TO RECORDS.--
(1) THE DEPARTMENT MAY ORDER A PBM, A HEALTH INSURER AND
A PBM'S OR HEALTH INSURER'S AFFILIATES TO PRODUCE RECORDS,
BOOKS OR OTHER INFORMATION AS REASONABLY NECESSARY TO
ASCERTAIN COMPLIANCE WITH THIS ACT.
(2) THE DEPARTMENT MAY EXAMINE OR AUDIT THE BOOKS AND
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RECORDS OF A PBM, A HEALTH INSURER AND A PBM'S OR HEALTH
INSURER'S AFFILIATES TO ASCERTAIN COMPLIANCE WITH THIS ACT.
THE EXAMINATION SHALL BE CONDUCTED IN ACCORDANCE WITH ARTICLE
IX OF THE ACT OF MAY 17, 1921 (P.L.789, NO.285), KNOWN AS THE
INSURANCE DEPARTMENT ACT OF 1921.
(C) PENALTIES.--UPON THE DETERMINATION, AFTER NOTICE AND
HEARING, THAT THIS ACT HAS BEEN VIOLATED, THE COMMISSIONER MAY
IMPOSE THE FOLLOWING PENALTIES:
(1) SUSPENSION OR REVOCATION OF THE LICENSEE'S LICENSE,
AUTHORIZATION TO OPERATE OR REGISTRATION.
(2) REFUSAL TO ISSUE OR RENEW A LICENSE, AUTHORIZATION
TO OPERATE OR REGISTRATION.
(3) A CEASE AND DESIST ORDER.
(4) ORDER REIMBURSEMENT TO AN INSURED, PHARMACY OR
DISPENSER THAT HAS INCURRED A MONETARY LOSS AS A RESULT OF A
VIOLATION OF THIS ACT.
(5) FOR EACH VIOLATION OF THIS ACT THAT A LICENSEE KNEW
OR REASONABLY SHOULD HAVE KNOWN WAS A VIOLATION, A PENALTY OF
NOT MORE THAN $100,000, NOT TO EXCEED AN AGGREGATE PENALTY OF
$1,000,000 IN A SINGLE CALENDAR YEAR.
(6) FOR EACH VIOLATION OF THIS ACT THAT A LICENSEE DID
NOT KNOW NOR REASONABLY SHOULD HAVE KNOWN WAS A VIOLATION, A
PENALTY OF NOT MORE THAN $50,000, NOT TO EXCEED AN AGGREGATE
PENALTY OF $500,000 IN A SINGLE CALENDAR YEAR.
SECTION 8. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
SECTION 902. REGULATIONS.
THE DEPARTMENT MAY PROMULGATE REGULATIONS AS NECESSARY AND
APPROPRIATE TO CARRY OUT THIS CHAPTER.
SECTION 903. CONSTRUCTION.
NOTHING IN THIS ACT SHALL BE CONSTRUED TO APPLY TO THE
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CONDUCT OF A PBM IN CONNECTION WITH A CONTRACT WITH A SELF-
FUNDED GROUP HEALTH PLAN SUBJECT TO 29 U.S.C. CH. 18 (RELATING
TO EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM).
Section 5 9. This act shall take effect in 60 days.
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