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SB 173

HEALTH/ACC INSURANCE: Provides for reimbursement rates paid by Pharmacy Benefit Managers. (8/1/25) (OR NO IMPACT SG EX See Note)

2025 Regular Session Introduced by Katrina Jackson-Andrews

Louisiana bill regulating PBM pharmacy reimbursement rates to take effect August 1, 2025, with no state budget impact.

Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Insurance.
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Bill Summary · SB 173

Legislative bill overview

SB 173 establishes new regulations governing how Pharmacy Benefit Managers (PBMs) set reimbursement rates for pharmacies. The bill, introduced in Louisiana by Senator Katrina Jackson-Andrews, aims to address pricing practices within the pharmaceutical supply chain. It is scheduled to take effect August 1, 2025, and is noted as having no fiscal impact on state government.

Why is this important

PBMs act as intermediaries between insurers, pharmacies, and patients, controlling significant portions of medication costs and pharmacy profitability. Reimbursement rate disputes have become increasingly contentious, with independent pharmacies arguing that inadequate rates threaten their viability and patient access to medications. This bill directly addresses a growing national concern about PBM pricing power and its effects on the pharmacy sector and healthcare costs.

Potential points of contention

  • Independent vs. chain pharmacy interests: Independent pharmacies may support stricter rate-setting requirements, while chain pharmacies and PBMs may argue such regulations increase administrative burden and operational costs
  • Insurance premium impacts: Insurers and business groups may worry that mandated reimbursement floors will increase costs passed to employers and consumers through higher premiums
  • Regulatory scope: Disagreement over whether the state should regulate private contracts between PBMs and pharmacies, or if this should remain a federal/marketplace issue

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

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