Add Oregon to the list of states that have enacted laws during their 2017 legislative sessions that codify further oversight over Pharmacy Benefit Managers (PBMs) and their business practices.
Oregon initially passed legislation in 2013 that required PBMs to register with the Oregon Department of Consumer Services (DCBS). The registration requirements and fee were minimal, with no follow-on verification or oversight. As the controversies around PBMs and their business practices grew, both pharmacists and consumer organizations in Oregon lobbied for additional laws and regulations that would add additional tools for the supervision of PBMs.
Oregon House Bill 2388, enacted in May of this year with most of its provisions set to become operative on January 1, 2018, grants DCBS the authority to deny, revoke, or suspend a PBM registration for specified conduct, including engaging in dishonesty, fraud or gross negligence in the conduct of business as a pharmacy benefit manager and refusing to be examined or to produce accounts, records or files for examination by the department. DCBS is also empowered to prescribe by rulemaking a procedure through which pharmacies may file a complaint with DCBS alleging misconduct by a PBM. Finally, the law removed the $50 cap on the PBM registration fee, enabling DCBS to initiate a fee structure adequate to cover the department’s costs for heightened level of administration, investigation, and enforcement.
The full text of House Bill 2388 is available HERE.
The FisherBroyles Pharmacy and Health Care Law team is pleased to keep you updated on legislation, cases, and other events of interest to those in the healthcare and pharmaceutical industries. Questions may be directed to any of the following attorneys: