Bill
SB 1012
Connecticut bill mandates health insurers compensate pharmacy benefits managers through transparent fees rather than manufacturer rebates to reduce drug pricing conflicts of interest.
SB 1012 would mandate that contracts between pharmacy benefits managers (PBMs) and health insurance carriers include fee-based compensation models rather than relying solely on rebates from pharmaceutical manufacturers. The bill aims to restructure how PBMs are financially incentivized when negotiating drug prices and managing pharmacy networks for insurers.
PBMs currently earn revenue through rebates negotiated with drug manufacturers, which critics argue creates perverse incentives—PBMs may benefit financially when drug prices are higher since rebates are typically percentage-based. Switching to transparent fee-based models could theoretically reduce drug costs for consumers and insurers by aligning PBM profits with lower drug spending rather than higher prices. This addresses a growing concern about PBM practices contributing to rising prescription drug costs.
Compiled from official sources — confirm details with the bill’s official record.
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