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SB 1025

Health care; creating the Oklahoma Rebate Pass-Through and Pharmacy Benefits Manager Meaningful Transparency Act of 2025; clarifying authority to take certain actions. Effective date.

2025 Regular Session Introduced by Steve Bashore and 1 co-sponsor

Oklahoma mandates pharmacy benefit managers pass manufacturer rebates directly to health plans and consumers, increasing drug cost transparency and reducing PBM profit retention.

Coauthored by Representative Bashore (principal House author)
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WeVote Research Nonpartisan
Bill Summary · SB 1025

Legislative bill overview

SB 1025 establishes the Oklahoma Rebate Pass-Through and Pharmacy Benefits Manager (PBM) Meaningful Transparency Act, requiring PBMs to pass rebates received from pharmaceutical manufacturers directly to health plans and consumers rather than retaining them. The bill clarifies state authority to regulate PBM practices and enforce transparency requirements in pharmacy benefit management.

Why is this important

PBMs currently act as intermediaries between insurers, pharmacies, and drug manufacturers, controlling drug pricing and access. Rebate practices are opaque, and critics argue PBMs retain negotiated discounts rather than passing savings to patients and insurers, contributing to higher out-of-pocket costs and insurance premiums. This legislation aims to increase transparency and ensure financial benefits reach end consumers.

Potential points of contention

  • PBM industry opposition: PBMs may argue that pass-through requirements reduce their negotiating leverage with manufacturers and could ultimately increase drug prices without rebate incentives
  • Implementation complexity: Defining what constitutes a "rebate," determining pass-through mechanisms, and enforcing compliance across multiple entities could create administrative burdens and litigation
  • Federal vs. state authority: PBM regulation involves interstate commerce and federal insurance law, raising questions about whether Oklahoma can effectively regulate without federal coordination or whether this conflicts with existing federal oversight

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

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