Harrisburg, Pa. – A new law intended to bring more transparency to pricing practices of pharmacy benefit managers (PBMs) was signed in to state law last week. Act 120 of 2020, formerly known as House Bill 941, was signed into law at the end of 2020's final legislative session.
The Department of Human Services now has the authority to question PBMs about payment information and other disclosures.
The bill also requires the Legislative Budget and Finance Committee to conduct a study investigating prescription drug pricing in the Medical Assistance Program (Medicaid).
Act 120 was created in response to cuts to pharmacy reimbursement rates by PBMs, particularly when it comes to Medicaid. The poor reimbursement rates have been especially detrimental to small, local, independent pharmacies.