Bill Text For SB0034 - Introduced

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 60th Legislature (2025)                |
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 3|SENATE BILL 34                       By: Hicks                         |
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 6|                            AS INTRODUCED                              |
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 7|       An Act relating to prescription drugs; creating the             |
  |       Access to Lifesaving Medicines Act; providing short             |
 8|       title; defining terms; prohibiting certain insurers             |
  |       and pharmacy benefits managers from imposing certain            |
 9|       costs; requiring certain rebates be offered to                  |
  |       certain health benefit plans; establishing terms of             |
10|       prescription drug cost sharing; directing                       |
  |       promulgation of rules; providing for noncodification;           |
11|       providing for codification; and providing an                    |
  |       effective date.                                                 |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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15|    SECTION 1.     NEW LAW     A new section of law not to be          |
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16|codified in the Oklahoma Statutes reads as follows:                    |
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17|    This act shall be known and may be cited as the "Access to         |
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18|Lifesaving Medicines Act".                                             |
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19|    SECTION 2.     NEW LAW     A new section of law to be codified     |
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20|in the Oklahoma Statutes as Section 6970 of Title 36, unless there     |
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21|is created a duplication in numbering, reads as follows:               |
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22|    As used in this section:                                           |
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23|    1.  "Adjusted out-of-pocket amount" means the copayment,           |
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24|coinsurance, or other cost-sharing obligation that a health benefit    |
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   Req. No. 679                                                    Page 1
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 1|plan requires an insured to pay at the point of sale for a covered     |
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 2|prescription medication otherwise payable, less the pro rata portion   |
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 3|of any discounts, rebates, and price concessions in connection with    |
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 4|the prescription drug;                                                 |
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 5|    2.  "Claim" means any bill, claim, or proof of loss made by or     |
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 6|on behalf of an insured or a provider to a health insurer or its       |
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 7|intermediary, administrator, or representative, with which the         |
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 8|provider has a provider contract for payment for health care           |
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 9|services under any health benefit plan;                                |
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10|    3.  "Excess cost burden" means any copayments, coinsurance, or     |
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11|other cost-sharing an insured is required to pay at the point of       |
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12|sale to receive a prescription drug or device that exceeds the         |
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13|health insurer's or pharmacy benefits manager's net cost after         |
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14|applying a pro rata portion of any discounts, rebates, or              |
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15|concessions received from manufacturers, pharmacies, or other third    |
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16|parties;                                                               |
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17|    4.  "Health benefit plan" means a health benefit plan as defined   |
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18|pursuant to Section 6060.4 of Title 36 of the Oklahoma Statutes;       |
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19|    5.  "Health care provider" or "provider" means a health care       |
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20|provider as defined pursuant to Section 3090.2 of Title 63 of the      |
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21|Oklahoma Statutes;                                                     |
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22|    6.  "Health insurer" means any entity subject to the               |
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23|jurisdiction of the Insurance Department and the insurance laws and    |
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24|regulations of this state that contracts or offers to contract to      |
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   Req. No. 679                                                    Page 2
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 1|provide, deliver, arrange for, pay for, or reimburse any of the        |
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 2|costs of health care services including, but not limited to, a         |
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 3|health maintenance organization, a health benefit plan, or any other   |
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 4|entity providing a plan of health insurance, health benefits, or       |
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 5|health care services;                                                  |
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 6|    7.  "Maximum allowable claim" means the amount the health          |
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 7|insurer or pharmacy benefits manager has agreed to pay a pharmacy;     |
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 8|    8.  "Maximum allowable cost" means the maximum dollar amount       |
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 9|that a health insurer or its intermediary will reimburse a pharmacy    |
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10|provider for a group of drugs rated as "A", "AB", "NR", or "NA" in     |
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11|the most recent edition of the Approved Drug Products with             |
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12|Therapeutic Equivalence Evaluations, published by the United States    |
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13|Food and Drug Administration, or similarly rated by a nationally       |
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14|recognized reference;                                                  |
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15|    9.  "Pharmacy" means a pharmacy as defined pursuant to Section     |
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16|353.1 of Title 59 of the Oklahoma Statutes;                            |
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17|    10.  "Pharmacy benefits manager" means a pharmacy benefits         |
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18|manager as defined pursuant to Section 6960 of Title 36 of the         |
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19|Oklahoma Statutes;                                                     |
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20|    11.  "Point of sale" means the transaction in which goods or       |
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21|services including, but not limited to, prescription medications,      |
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22|medical devices, and medical supplies are sold to the consumer;        |
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23|    12.  "Rebate" means:                                               |
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   Req. No. 679                                                    Page 3
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 1|         a.    negotiated price concessions including, but not         |
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 2|              limited to, base rebates and reasonable estimates of     |
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 3|              any price protection rebates and performance-based       |
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 4|              rebates that may accrue, directly or indirectly, to      |
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 5|              the health insurer or pharmacy benefits manager as a     |
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 6|              result of point-of-sale prescription medication claims   |
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 7|              processing during the coverage year from a               |
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 8|              manufacturer, dispensing pharmacy, or other party to     |
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 9|              the transaction, or                                      |
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10|         b.    reasonable estimates of any fees and other              |
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11|              administrative costs that are passed through to the      |
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12|              health insurer as a result of point-of-sale              |
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13|              prescription medication claims processing and serve to   |
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14|              reduce the health insurer's prescription medication      |
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15|              liabilities for the coverage year; and                   |
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16|    13.  "Provider contract" means any contract between a health       |
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17|care provider and a health insurer, or an insurer's network,           |
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18|provider panel, intermediary, or representative, relating to the       |
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19|provision of health care services.                                     |
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20|    B.  Any health insurer or pharmacy benefits manager that issues,   |
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21|renews, or amends a health benefit plan with prescription drug         |
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22|coverage shall not impose an excess cost burden on an insured.         |
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23|    C.  When contracting with a health insurer or health benefit       |
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24|plan to administer pharmacy benefits, a pharmacy benefits manager      |
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   Req. No. 679                                                    Page 4
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 1|shall offer the health benefit plan the option of extending            |
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 2|point-of-sale rebates to enrollees of the plan.                        |
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 3|    D.  Prescription drug cost-sharing for an insured shall be the     |
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 4|lesser of:                                                             |
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 5|    1.  The applicable copayment for the prescription medication       |
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 6|that would be payable in the absence of this section;                  |
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 7|    2.  The maximum allowable cost;                                    |
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 8|    3.  The maximum allowable claim;                                   |
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 9|    4.  The adjusted out-of-pocket amount as determined pursuant to    |
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10|this section;                                                          |
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11|    5.  The amount an insured would pay for the prescription           |
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12|medication if the insured purchased it without using his or her        |
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13|health benefit plan or any other source of prescription medication     |
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14|benefits or discounts; or                                              |
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15|    6.  The amount the pharmacy will be reimbursed for the             |
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16|prescription medication by the health insurer or pharmacy benefits     |
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17|manager.                                                               |
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18|    E.  The Insurance Commissioner shall promulgate rules to           |
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19|effectuate the provisions of this section.                             |
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20|    SECTION 3.  This act shall become effective November 1, 2025.      |
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22|    60-1-679       CAD       12/17/2024 3:52:48 PM                     |
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   Req. No. 679                                                    Page 5
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