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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: May 8, 2019 10:10 AM
From: Representative Stephen Barrar
To: All House members
Subject: Conflict of Interest Legislation
In the near future, I will be introducing legislation to address a systemic problem where a pharmacy benefit manager (PBM) which contracts and has control over all retail pharmacies also owns their own competing retail pharmacies. This allows the PBM to potentially favor their own pharmacies in many ways over other competing pharmacies.

I recently became aware of instances when community pharmacies received letters from larger, retail pharmacies offering to buy their business at the same time their reimbursement rates were being cut, often by the same corporate entity that owns the competing pharmacies. We have also heard where the PBM pays their own retail pharmacy a higher rate than others or contacts patients suggesting in such a manner that makes them believe they must switch pharmacies.

I am very concerned about this, especially because community pharmacies play a vital role and provide a valuable service to our citizens and we need to do all we can to ensure they remain open for business. Closing of community pharmacies limits a patient’s ability to use the pharmacy of their choice.

Therefore, I will be introducing legislation to prevent managed care organizations from using a PBM for Medicaid if the PBM is part of a larger company that also owns retail pharmacies.

I hope you will join me in cosponsoring this important legislation.

Introduced as HB945