Signed by Governor Kristi Noem

Vote Smart's Synopsis:

Vote to pass a bill that establishes transparency in the pricing of prescription drugs.

Highlights:

• Defines “covered individual” as a member, participant, enrollee, contract holder, policy holder, or beneficiary of a third-party payor who is provided health coverage, including any dependent or other individual provided health coverage (Sec. 1).

• Defines “pharmacy benefit managers” as individuals responsible for procuring drugs at a negotiated rate for dispension within this state to covered individuals (Sec. 1).

• Requires all pharmacy benefit managers disclose the amount of rebate revenues and establish complete transparency in the pricing of prescription drugs to all covered individuals (Sec. 3).

• Authorizes the director of health and human services to deny, revoke, or terminate a pharmacy benefit manager’s application for initial or renewed license if they have been determined to have failed to provide any information under this bill (Sec. 19).

• Specifies that this bill shall take effect upon passage and approval by the governor (Sec. 20).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes transparency in the pricing of prescription drugs.

Highlights:

• Defines “covered individual” as a member, participant, enrollee, contract holder, policy holder, or beneficiary of a third-party payor who is provided health coverage, including any dependent or other individual provided health coverage (Sec. 1).

• Defines “pharmacy benefit managers” as individuals responsible for procuring drugs at a negotiated rate for dispension within this state to covered individuals (Sec. 1).

• Requires all pharmacy benefit managers disclose the amount of rebate revenues and establish complete transparency in the pricing of prescription drugs to all covered individuals (Sec. 3).

• Authorizes the director of health and human services to deny, revoke, or terminate a pharmacy benefit manager’s application for initial or renewed license if they have been determined to have failed to provide any information under this bill (Sec. 19).

• Specifies that this bill shall take effect upon passage and approval by the governor (Sec. 20).

Full Bill Text