HB 3226
Includes pharmacy services administrative organizations within the definition of pharmacies for the purpose of ensuring that pharmacy benefit managers are subject to laws regulating their activities even if their contracts are with pharmacy services administrative organizations.
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Sign in to take actionPublic sentiment
Support
50%
Oppose
50%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill expands the definition of ‘pharmacy’ to include pharmacy services administrative organizations. It aims to ensure that pharmacy benefit managers (PBMs) are subject to the same regulations as traditional pharmacies, even if they contract with these administrative organizations. The bill requires these administrative organizations to register with the Department of Consumer and Business Services and outlines specific exemptions from this registration requirement. This is intended to increase oversight of PBM practices.
Key provisions
- Defines ‘pharmacy’ to include pharmacy services administrative organizations.
- Requires pharmacy services administrative organizations to register with the Department of Consumer and Business Services.
- Establishes exemptions from the registration requirement for pharmacy services administrative organizations.
- Updates ORS 735.530 to clarify definitions related to pharmacy claims and benefits.
- Amends ORS 744.702 to require licensing for third party administrators, including those acting as pharmacy services administrative organizations.
- Specifies functions that constitute a pharmacy benefit manager.
- Addresses specialty drugs and pharmacies.
Who is affected
- Pharmacy Benefit Managers (PBMs)
- Pharmacy Services Administrative Organizations
- Pharmacies
- Health Insurers
- Consumers (through potential impacts on prescription drug costs)
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsors
Cosponsors
David Brock Smith
Arguments in favor
Reasons to support this legislation.
Supporters of House Bill 3226 believe that strengthening oversight of pharmacy benefit managers (PBMs) is crucial to creating a more transparent pharmacy marketplace in Oregon, with the ultimate goal of protecting patients from compromised care. By addressing problematic PBM practices, the bill aims to promote greater accountability and transparency, allowing for more informed decision-making by healthcare providers and patients alike. Proponents argue that this increased oversight will lead to improved patient outcomes and reduced costs, as well as a level playing field for all stakeholders in the pharmacy industry.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB 3226 express concerns that the proposed regulations will have a negative impact on access to affordable medicines. They argue that increased regulatory burdens will lead to higher costs for pharmaceutical companies, ultimately resulting in higher prices for consumers. This, in turn, may reduce access to essential medications, particularly for vulnerable populations such as the elderly and those with chronic conditions. Additionally, some that these regulations will stifle innovation and limit the development of new treatments, exacerbating existing healthcare disparities.
Source: Testimony Summaries