Committee advances strike‑all to HB 697 aimed at PBM practices and pharmacy protections

Representative Kinkart Johnson presented a strike‑all for HB 697 that removes provisions addressing most‑favored‑nation upper payment limits and certain formulary restrictions while exempting PBMs that serve only PACE programs. The sponsor said provisions were tailored so the remaining reforms are workable and not unduly burdensome for small programs.

McKenna Davis (appearance noted as waiving in support) and other stakeholders registered in favor. Barney Bishop, representing small independent neighborhood pharmacies, testified at length that PBMs operate in secrecy, steer high‑reimbursement prescriptions to affiliated pharmacies, and have impeded state examinations. Bishop cited a report by the Office of Insurance Regulation he said found noncooperation and unpaid fees owed by PBMs; he argued these practices have contributed to pharmacy closures.

Committee members expressed appreciation for the sponsor's work engaging stakeholders. Representative Abbott and others praised the effort to balance complex industry concerns. The sponsor closed by saying HB 697 builds on prior 2023 reforms and urged favorable support.

The clerk called the roll; the committee reported HB 697 favorably as amended with a recorded tally of 24 yays, 0 nays.

Next steps: the bill will move from committee to the next stage in the legislative process.