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Bill

HB 229

Establish licensing process, contract requirements for PBMs

136th Legislature (2025-2026) Introduced by Munira Abdullahi and 48 co-sponsors

Ohio would require pharmacy benefit managers to obtain state licenses and comply with contractual standards governing pharmacy relationships and drug pricing practices.

Effective 6/30/26
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Bill Summary · HB 229

Legislative bill overview

HB 229 would establish a state licensing requirement for Pharmacy Benefit Managers (PBMs) operating in Ohio and impose contractual standards governing their relationships with pharmacies and insurers. The bill aims to create regulatory oversight of PBM practices, which have faced criticism for opaque pricing and reimbursement structures that affect drug costs and pharmacy viability.

Why is this important

PBMs act as intermediaries between insurers, employers, and pharmacies, controlling how much patients pay for prescriptions and how much pharmacies are reimbursed. Increased regulation could potentially lower drug costs for consumers, improve pharmacy profitability, and increase transparency—though implementation costs and potential market effects require careful consideration.

Potential points of contention

  • Regulatory burden vs. benefit: Licensing requirements create compliance costs that PBMs may pass to insurers and consumers, potentially offsetting savings from increased transparency
  • Contract standardization limits: Mandated contract terms reduce negotiating flexibility and may disadvantage smaller PBMs or limit competitive innovation in the market
  • Enforcement capability: Ohio would need dedicated resources to audit and enforce PBM compliance, raising questions about funding and regulatory expertise
  • Interstate commerce concerns: Federal involvement in PBM regulation and multistate operations may create conflict or inconsistency with national standards

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

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