WeVote
Log In

Bill

Bill

SSB 1017

A bill for an act relating to pharmacy benefits manager reverse auctions and group insurance for public employees.

2025-2026 Regular Session

SSB 1017 requires reverse auctions for pharmacy benefits manager services, aiming to lower drug costs for public employees and boost competition among providers.

Committee report approving bill, renumbered as SF 315.
#administrativeservicesdepartment #auctions #contracts #dependentpersons #drugs #groupinsurance #insurance #pharmacybenefitsmanagers #prices #publicemployees #vendors
0
WeVote Research Nonpartisan
Bill Summary · SSB 1017

Summary of SSB 1017: Pharmacy Benefits Manager Reverse Auctions and Group Insurance for Public Employees

Bill Number: SSB 1017
Renumbered As: SF 315
Introduced: January 16, 2025
Status: Committee report approving bill
Classification: Proposed Bill
Subject Areas: Administrative services, auctions, contracts, drugs, group insurance, insurance, pharmacy benefits managers, public employees, vendors

Purpose and Intent

The primary purpose of SSB 1017 is to establish a framework for the procurement of pharmacy benefits manager (PBM) services through reverse auctions for self-funded public sector health plans. This bill aims to enhance the efficiency and cost-effectiveness of pharmacy benefits management for public employees by leveraging competitive bidding processes.

Key Provisions

  1. Definition of Self-Funded Public Sector Health Plan:

    • The bill defines a "self-funded public sector health plan" as any group benefit plan under Chapter 509A.

  2. Contracting for Pharmacy Benefits Manager Services:

    • The Department of Administrative Services is mandated to enter into contracts for PBM services to manage benefits for self-funded public sector health plans, ensuring compliance with the bill's provisions.

  3. Reverse Auction Requirement:

    • By November 1, 2025, the department must procure a technology platform capable of conducting automated, online reverse auctions for PBM services. This platform must:
      • Facilitate an automated auction process using validated software and data infrastructure.
      • Enable the automation of repricing for diverse PBM proposals, allowing for direct cost comparisons based on comprehensive prescription drug claims data.
      • Support real-time evaluation of multiple PBM proposals to ensure competitive pricing and service offerings.

  4. Data Security and Standards:

    • The technology platform must adhere to stringent information security standards, validated by recognized certifications such as SOC 2 and NIST.

Impact

  • Public Employees: The bill directly affects public employees who are enrolled in self-funded health plans by potentially lowering their prescription drug costs through competitive bidding.
  • Pharmacy Benefits Managers: PBMs will be required to participate in the reverse auction process, which may lead to increased competition and innovation in service offerings.
  • Administrative Efficiency: The bill aims to streamline the procurement process for PBM services, potentially reducing administrative burdens on the Department of Administrative Services.

Procedural Timeline

  • January 16, 2025: Bill introduced and referred to the Health and Human Services Committee.
  • January 17, 2025: Subcommittee meeting held.
  • January 22, 2025: Subcommittee recommends amendment and passage.
  • February 12, 2025: Committee report approving the bill, renumbered as SF 315.

This summary provides an overview of SSB 1017, highlighting its objectives, key provisions, and the anticipated impact on public employees and pharmacy benefits management.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.