2016 -- S 2509

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LC004960

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

     RELATING TO INSURANCE - PHARMACY FREEDOM OF CHOICE - FAIR

COMPETITION AND PRACTICES

     Introduced By: Senators Miller, Goldin, Crowley, Lombardo, and Nesselbush

     Date Introduced: February 25, 2016

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-29.1-7 of the General Laws in Chapter 27-29.1 entitled

"Pharmacy Freedom of Choice - Fair Competition and Practices" is hereby amended to read as

follows:

     27-29.1-7. Regulation of pharmacy benefits managers. – (a) Pharmacy benefits

managers shall be included within the definition of third-party administrator under chapter 20.7 of

this title and shall be regulated as such. The annual report filed by third-party administrators with

the department of business regulation shall include: contractual language that provides a complete

description of the financial arrangements between the third-party administrator and each of the

insurers covering benefit contracts delivered in Rhode Island; and if the third-party administrator

is owned by or affiliated with another entity or entities, it shall include an organization chart and

brief description which shows the relationships among all affiliates within a holding company or

otherwise affiliated. Such reporting shall be in a format required by the director and filed with the

department as a public record as defined and regulated under chapter 2 of title 38.

     (b) At the time of filing, a one dollar ($1.00) per covered life per month fee shall be paid

to the department of business regulation.

     (c) The funds accruing to the state as provided in subsection (b) of this section shall be

deposited into a restricted receipt account, managed by the secretary of the executive office of

health and human services. The funds shall be expended on treatment for opioid use disorders as

determined by the secretary to meet the recommendations of the governor's overdose prevention

and intervention task force.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO INSURANCE - PHARMACY FREEDOM OF CHOICE - FAIR

COMPETITION AND PRACTICES

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     This act would add a one ($1.00) dollar fee per covered life per month to be paid when

filing the annual report required of third party administrators of pharmacy benefit plans. The

funds would go into a restricted receipt account and would be expended on opioid use disorders.

     This act would take effect upon passage.

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