On Wednesday, Florida Governor Ron DeSantis signed into law legislation that reforms the state’s prescription drug market by requiring accountability among pharmaceutical middlemen, empowering consumers through increased choice among pharmacies, and creating transparency in prescription drug price increases.
The legislation, title the Prescription Drug Reform Act, “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. Further, PBMs will also 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,” a press release from DeSantis’ office said.
“Additionally, the bill reinforces the Governor’s commitment to transparency in the cost of prescription drugs by requiring pharmaceutical companies to disclose price increases for price hikes of 15% within a calendar year or 30% within a three-year period,” the press release added.
“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,” said DeSantis. “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.”
“Governor DeSantis has consistently put Floridians first in the fight to lower drug costs and make health care more accessible,” said Agency for Health Care Administration Secretary Jason Weida. “I’m proud to stand with him as he signs the most comprehensive legislation in Florida history to rein in the Pharmaceutical Industrial Complex by holding Big Pharma and PBMs accountable, driving transparency never seen before in this industry in Florida.”
