AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO PHARMACY BENEFITS MANAGERS.

153rd General Assembly (2025-2026) Introduced by Spiros Mantzavinos and 10 co-sponsors

SB 271 would tighten Delaware PBM oversight by requiring transparency, consumer protections, and enforceable contracts to ensure rebates and savings reach payers and patients.

Passed By House. Votes: 40 YES 1 ABSENT

Summary of SB 271 (Session 153, Delaware)

Purpose and intent

SB 271 proposes amendments to Title 18 of the Delaware Code to alter how pharmacy benefits managers (PBMs) operate within the state.

The bill aims to enhance oversight, transparency, and accountability of PBMs to protect consumers, employers, and the integrity of pharmacy benefit arrangements.

Key provisions and changes (proposed)

Regulatory framework: Establishes or strengthens state-level requirements applicable to PBMs operating in Delaware, including licensing, registration, or certifications as deemed appropriate by the bill.

Disclosures and transparency: Likely mandates more detailed reporting or disclosure of PBM practices such as formulary design, rebates, price concessions, and formulary tiering decisions to ensure stakeholders (e.g., employers, patients, and the state) can evaluate cost implications.

Consumer protections: Introduces measures intended to safeguard patients from deceptive or unfair PBM practices, such as adverse impact on patient access, prescription costs, or drug availability.

Contracts and negotiations: May impose rules around passthrough of rebates, spread pricing prohibitions, or other contract-related protections to ensure more direct pass-through of savings to payers and patients.

Enforcement and penalties: Establishes enforcement mechanisms, including potential penalties for noncompliance, and designates appropriate state agencies to administer and enforce the provisions.

Definitions and scope: Clarifies key terms related to PBMs, coverage, and related pharmaceutical services to ensure consistent interpretation of the law.

Who would be affected

Pharmacy benefits managers operating in Delaware, including any entity performing PBM functions such as formulary management, rebate administration, or claims adjuration for Delaware-based plans.

Insurers, self-insured employers, and third-party administrators that contract with PBMs and administer pharmacy benefits in Delaware.

Pharmacies and drug manufacturers might experience changes in how rebates and pricing are disclosed or negotiated, depending on the final text of the provisions.

Consumers/patients receiving prescription drugs through plans governed by the amended provisions.

Procedural and timeline aspects

Introduction and assignment: SB 271 was introduced and assigned to the Senate Executive Committee on March 26.

Committee action: The bill was reported out of the Executive Committee "with 6 On Its Merits" on May 21, indicating the committee found merit in the bill and moved it forward for consideration.

Next steps: Pending Senate floor vote and potential passage by the Delaware General Assembly, followed by any needed governor action. If enacted, the bill’s effective dates would typically be specified within the final text, including compliance timelines for PBMs and affected entities.

Notes

The summary reflects the information available from the action history and bill title. The precise language of provisions (e.g., exact reporting requirements, penalties, and effective dates) will be in the enrolled bill text. For implementation and compliance planning, reviewing the full statutory language and any regulatory guidance issued after enactment will be essential.