Bill description: SB 1068 would establish registration for pharmacy benefit managers operating in Idaho.
Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Pharmacy benefit managers are private companies that act as intermediaries between pharmaceutical companies, pharmacies, and patients. They negotiate prices, manage distribution networks, process claims and provide other services. All this is performed as part of a prescription drug benefit program.
SB 1068 would allow the Department of Insurance to “enforce rules and fees to implement and supervise the registration and such other requirements necessary for pharmacy benefit managers.” The fiscal note provides no estimate for what this registration fee would cost, but in neighboring Washington, the fee to register as a PBM is $200 while in Oregon, the fee is $1,100. In Utah, the fee is $100.
Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market?
SB 1068 would require businesses to submit an application and register with the state Department of Insurance before engaging in business in the state. The department would, through its rule-making process, be able to determine what this application and registration would look like.
Update: This analysis was updated on 3/14.
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