Monday, March 6, 2023
Senate Republicans know Hoosiers pay among the highest health care costs in the nation. That's why this session we have made it a caucus priority to find ways to help lower the cost of care.
Senate Bill 8 would require pharmacy benefit managers (PBMs) to distribute rebates they receive for prescriptions to patients buying the medications or to all plan members.
PBMs are middlemen that help insurers establish prescription prices and coverage for their insurance plans. It is common for PBMs to negotiate contracts with drug companies so they obtain rebates every time a patient covered by their plan receives certain medications.
However, lawmakers have become concerned that PBMs are pocketing these rebates, rather than passing them on to patients and the employers who buy insurance for their employees.
For people covered by individual health insurance, SB 8 would require PBMs to pass the rebate directly to the patient who bought the prescription drug. For group health insurance plans, SB 8 would require PBMs to pass the rebate to the insurer. The insurer can give the money to the patient who bought the prescription drug or the plan sponsor to reduce the overall cost of the insurance plan.
Senate Republicans are committed to improving Indiana's health care system. Lowering medical costs, including prescription drug prices, would be an additional step to better support Hoosiers' medical needs.
SB 8 passed the Senate and is now with the House of Representatives for further consideration. For more information about this bill, click here.
