Sponsors: Jason Petrie

Amend KRS 304.17A-164 to prohibit insurers, pharmacy benefit managers, and other administrators of pharmacy benefits from imposing certain requirements on health plan insureds; create new sections of Subtitle 17A of KRS Chapter 304 to establish definitions for pharmacy-related insurance practices; require pharmacy benefit managers to establish reasonably adequate and accessible pharmacy networks; require pharmacy benefit managers to file, and the insurance commissioner to review, an annual report describing pharmacy networks; provide that information and data acquired by the Department of Insurance shall be considered proprietary and not subject to disclosure under KRS 61.870 to 61.884; establish requirements for certain contracts between a pharmacy or pharmacist and a pharmacy benefit manager; establish prohibited practices for pharmacy benefit managers; establish certain requirements for insurers and pharmacy benefit managers contracting for the provision of pharmacy benefit management services; prohibit administrators from offering any incentive or discount for use of an affiliated pharmacy benefit manager; establish a Pharmacy Benefits Management Advisory Council; create a new section of Subtitle 99 of KRS Chapter 304 to authorize the insurance commissioner to order reimbursement to persons who incurred a monetary loss as a result of a violation of provisions of legislation; amend KRS 304.9-054 to make technical changes; authorize the promulgation of administrative regulations; require pharmacy benefit managers to report certain information to the insurance commissioner; provide that certain reported information shall not be subject to disclosure under KRS 61.870 to 61.884; amend KRS 304.17A-708, 304.17A-712, and 304.17A-714 to conform; create a new section of Subtitle 17C of KRS Chapter 304 to apply provisions of legislation to limited health service benefit plans, including limited health service contracts; create a new section of Subtitle 38A of KRS Chapter 304 to apply provisions of legislation to limited health service organizations; amend 18A.225 to require the state employee health plan to comply with provisions of legislation; amend KRS 367.828 to establish certain requirements for the health discount plans that purport to offer discounts, or access to discounts, on prescription drugs; provide for staggered appointments to the Pharmacy Benefits Management Advisory Council; provide that provisions of this Act shall be severable; require the insurance commissioner to promulgate regulations to implement the Act on or before January 1, 2023; EFFECTIVE, in part, January 1, 2023.