News Summary
The Louisiana Legislature wrapped up its regular session on May 31, 2024, focusing on pharmacy benefit managers (PBMs) and budget allocations. Key legislative measures included House Bill 264, which limits PBMs from directing clients to their pharmacies, and allocates $43.5 million for the LA GATOR program. The budget for the next fiscal year is around $51 billion, addressing various state issues, including transportation and insurance reforms, amid significant lobbying efforts and a bipartisan push for change.
Baton Rouge, Louisiana – The Louisiana Legislature concluded its regular session on May 31, 2024, marking a significant period of legislative activity focused on pharmacy benefit managers (PBMs) and budget allocations. Key measures were debated and passed, leading to an enhanced regulatory environment for PBMs and considerable funding for various state programs.
On the final day of the session, lawmakers faced two major issues regarding the regulation of PBMs. Although a proposed bill that aimed to prohibit companies from owning both PBMs and drug stores was ultimately rejected, lawmakers successfully passed House Bill 264. This legislation prevents PBMs from directing clients to their own pharmacies and obligates them to pass on negotiated discounts to employers and consumers. Furthermore, PBMs will now be required to provide more comprehensive reports detailing their activities to government regulators.
The session also saw an allocation of $43.5 million for the LA GATOR program, which assists families with private school tuition expenses. In total, the legislature approved approximately $1.2 billion in one-time expenditures, which includes funds earmarked for road and bridge improvements and an increase in payments from the state to sheriffs for housing state inmates.
While these legislative measures await the signature of Governor Jeff Landry to be enacted, the governor has expressed that the session was a victory for addressing challenging issues, particularly concerning insurance law and the Department of Transportation and Development. The session spanned two months and primarily concentrated on reforms in the insurance sector.
Among the numerous laws passed during this session, several benefited insurance companies, including a bill granting additional authority to the insurance commissioner over rate increase approvals. Additionally, significant legislation was passed to reform the Department of Transportation and Development, alter deadlines for prisoner sentence changes, and establish rights for lawsuits against abortion drug providers. The House also approved legislation mandating that app stores implement age verification and obtain parental consent for minors downloading applications.
The budget for the upcoming fiscal year was a central theme of the discussions, amounting to approximately $51 billion, with around half of this amount sourced from federal funds. Funding for the LA GATOR program was a point of contention, originally seeking $93.5 million, but ultimately settled at $43.5 million. Under the budget plan, local jails housing state inmates will see their per day rates increase from $26.39 to $29.39.
The PBM ownership debate highlighted tensions within the legislative body, primarily due to significant lobbying efforts from CVS. The company argued that the proposed ban would lead to the closure of 119 pharmacies in Louisiana, ultimately affecting access for around 1 million patients. CVS employed aggressive lobbying tactics, including sending text messages to patients that prompted an investigation by the state Attorney General. In the end, the Senate opted for further study on the prohibition of PBM ownership of pharmacies instead of pursuing the controversial ban (HB 358).
The conclusion of the legislative session reflected a bipartisan agreement among lawmakers to prioritize insurance reform as a pressing issue. The measures approved and proposed have set the stage for further discussions and potential reforms in the future, particularly in the areas of healthcare and transportation within the state.
Deeper Dive: News & Info About This Topic
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