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HB 2270

An Act amending the act of November 21, 2016 (P.L.1318, No.169), known as the Pharmacy Audit Integrity and Transparency Act, in preliminary provisions, further providing for definitions; and, in pharmacy benefits manager contracts, providing for State pharmacy benefits manager.

2025-2026 Regular Session Introduced by Aerion Abney and 32 co-sponsors

Pennsylvania would establish a state-operated pharmacy benefits manager to manage prescription drug plans, potentially offering cost savings and transparency as an alternative to private PBM services.

Referred to Health
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Bill Summary · HB 2270

Legislative bill overview

HB 2270 amends Pennsylvania's 2016 Pharmacy Audit Integrity and Transparency Act by expanding definitions and establishing a State pharmacy benefits manager (PBM). The bill would allow Pennsylvania to directly operate or contract with a PBM to manage prescription drug benefits, potentially competing with or providing an alternative to private PBM services.

Why is this important

Pharmacy benefits managers currently control drug pricing, formulary decisions, and reimbursement rates for millions of Pennsylvanians through insurance plans and state programs. A state-operated PBM could theoretically reduce costs, increase transparency, and give Pennsylvania direct control over prescription drug pricing—issues that significantly affect healthcare affordability for residents and state budget expenditures.

Potential points of contention

  • Private market disruption: Private PBMs and insurance companies may argue state competition unfairly uses government resources and threatens their business models, potentially leading to litigation or federal preemption challenges
  • Implementation complexity and costs: Creating a functional state PBM requires substantial infrastructure, regulatory expertise, and capital investment; success depends on achieving economies of scale comparable to national competitors
  • Scope ambiguity: The bill language doesn't clearly specify which populations would use the state PBM, how it would integrate with existing state programs (Medicaid, state employee plans), or what "further providing for definitions" entails without seeing the full amended text

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

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