Gov. Ron DeSantis held a news conference Wednesday morning at Florida Atlantic University’s MacArthur Campus in Jupiter, where he signed the Prescription Drug Reform Act into law.
According to a press release from the governor’s office, the bill will “require accountability among pharmaceutical middlemen, empower consumers through increased choice among pharmacies, and create transparency in prescription drug price increases.”
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“This legislation builds a foundation of transparency for pharmacy benefit manager (PBM) practices and drug prices in Florida, allowing consumers to make the best choices for their own health,” DeSantis said. “PBMs and Big Pharma have managed to escape the public eye and work in the shadows for far too long. I’m proud to sign a bill that takes the reins back from these health care monopolies while empowering consumers.”
Senate Bill 1550 requires pharmaceutical companies to disclose price increases for price hikes of 15% within a calendar year or 30% within a three-year period.
It also “institutes regulatory best practices for PBMs operating in Florida and provides the Office of Insurance Regulation (OIR) the authority to examine and investigate PBMs and review possible violations of rules, as is done with all insurers in the state of Florida.”
PBMs will also now have to disclose all organizations affiliated with the applicant, including any affiliated pharmacies or companies within their corporate umbrella.
“The bill institutes a series of patient protections within the insurance code, to include prohibiting a PBM from forcing a patient to undergo ‘step therapy’ or failing twice, i.e. the practice of forcing someone to restart a medication they know doesn’t work when they switch insurance companies,” the news release stated.
Wednesday’s press conference can be viewed in full below: