Revise laws related to pharmacy benefit managers

2025 Regular Session

Reforms pharmacy benefit managers to boost price transparency and strengthen consumer protections for patients.

(LC) Draft Died in Process

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LC 820 — Revise laws related to pharmacy benefit managers

Overview

LC 820 is a bill identified as a revision of existing statutes governing pharmacy benefit managers (PBMs). It was introduced on November 4, 2024. The current status shows the legislation as an LC draft that was put on hold and subsequently noted as “Died in Process” as of May 22, 2025. Earlier actions include Drafter Assigned and Draft On Hold on November 4, 2024.

Purpose and intent

The bill’s stated goal is to revise laws related to pharmacy benefit managers. While the exact language and objectives are not provided in the available summary, PBM reform bills typically seek to address transparency, consumer protections, and oversight of PBM practices within health care and prescription drug markets.

Key provisions (availability of text)

The specific provisions of LC 820 are not included in the summary provided. As a result, the exact changes to PBM law (e.g., requirements around rebates, disclosure, formulary management, licensing/registration, contract terms, auditing, or reporting) cannot be enumerated from this information. If a full text becomes available, a section-by-section comparison would be possible to identify:

Transparency requirements (rebate and discount disclosures, contract terms)

Consumer protections (claims of balance billing, patient access safeguards)

Oversight and enforcement mechanisms (which agency would regulate PBMs, penalties, audits)

Reporting requirements (annual or periodic data submissions to legislators or regulators)

Any licensing, registration, or professional standards for PBMs

Affected parties

Possible stakeholders typically impacted by PBM reform include:
- Pharmacy Benefit Managers (PBMs) and their affiliates
- Health insurers and employers offering prescription drug coverage
- Community and mail-order pharmacies
- Patients and consumers (drug pricing, access, and transparency)
- Health care providers and prescribers
- State regulatory or health agencies responsible for health care or insurance

Procedural history and timeline

2024-11-04: Drafter Assigned; Draft On Hold

2024-11-04: Draft On Hold (status indicates the bill was paused during drafting)

2025-05-22: (LC) Draft Died in Process (no further action anticipated under current draft)

Status classification: (LC) Draft Died in Process

Potential impact and considerations

If enacted, LC 820 could alter how PBMs operate within the state, potentially affecting drug pricing transparency, rebate flows, formulary design, and consumer protections. Benefits often cited in PBM reform proposals include lower out-of-pocket costs for some patients and greater clarity around pricing. Possible challenges or costs could include compliance burdens for PBMs and potential impacts on payer negotiations. Given the bill is currently listed as having died in process, immediate legislative changes are not expected.

Next steps

If reintroduced, the bill would typically move through committee referrals, hearings, and potential amendments.

Review of full text would be necessary to assess specific provisions, fiscal impact, and implementation timelines.

If you can provide the full text or the committee report, I can deliver a precise, line-by-line summary of the provisions and their implications.