House Concurred in Senate Amendments to H.233 to License Pharmacy Benefit Managers
May 10, 2024 | HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
The House of Representatives voted to concur in Senate amendments to H.233, legislation that would require the Department of Financial Regulation (DFR) to license and regulate pharmacy benefit managers (PBMs). The concurrence was announced by the presiding officer following a voice vote that moved the bill for immediate consideration.
H.233 aims to address the growing role and market power of PBMs, which the House Health Care Committee described as entities originally created to provide administrative services to insurers for drug plans but which have since expanded their influence. "PBMs are entities that were originally designed to provide administrative services to insurers," said the Member from Lincoln, who reported the bill for the committee.
The bill's central change is to empower DFR to investigate PBMs, issue penalties and enforce compliance where PBMs "are not following the law," the committee report said. The presenter noted two Senate amendments: one narrows the scope of materials that the Office of the Health Care Advocate may receive after an investigation to address DFR confidentiality concerns, and another removes a private right of action that had been included in earlier versions of the bill.
On the private right of action, the Member from Lincoln said the Senate Judiciary chair brought an amendment to strike that provision because more analysis was needed on its potential impact. Rather than keep the private right of action in statute now, the Senate amendment requires DFR to return to the relevant committees with a report advising whether such a private cause of action is necessary based on information gathered through enforcement and investigations.
The House Health Care Committee reported a straw poll in support of concurrence and asked the House to "support" the committee recommendation; the House then took the voice vote and the presiding officer announced concurrence in the Senate proposal of amendment.
Next steps: with concurrence recorded, H.233 moves forward consistent with legislative procedures for bills that have been amended by the other chamber.
H.233 aims to address the growing role and market power of PBMs, which the House Health Care Committee described as entities originally created to provide administrative services to insurers for drug plans but which have since expanded their influence. "PBMs are entities that were originally designed to provide administrative services to insurers," said the Member from Lincoln, who reported the bill for the committee.
The bill's central change is to empower DFR to investigate PBMs, issue penalties and enforce compliance where PBMs "are not following the law," the committee report said. The presenter noted two Senate amendments: one narrows the scope of materials that the Office of the Health Care Advocate may receive after an investigation to address DFR confidentiality concerns, and another removes a private right of action that had been included in earlier versions of the bill.
On the private right of action, the Member from Lincoln said the Senate Judiciary chair brought an amendment to strike that provision because more analysis was needed on its potential impact. Rather than keep the private right of action in statute now, the Senate amendment requires DFR to return to the relevant committees with a report advising whether such a private cause of action is necessary based on information gathered through enforcement and investigations.
The House Health Care Committee reported a straw poll in support of concurrence and asked the House to "support" the committee recommendation; the House then took the voice vote and the presiding officer announced concurrence in the Senate proposal of amendment.
Next steps: with concurrence recorded, H.233 moves forward consistent with legislative procedures for bills that have been amended by the other chamber.
View the Full Meeting & All Its Details
This article offers just a summary. Unlock complete video, transcripts, and insights as a Founder Member.
✓
Watch full, unedited meeting videos
✓
Search every word spoken in unlimited transcripts
✓
AI summaries & real-time alerts (all government levels)
✓
Permanent access to expanding government content
30-day money-back guarantee
