Members of a committee here at the National Conference of Insurance Legislators have postponed indefinitely consideration of a model act that would have set standards for pharmacy benefits managers.
A representative for health insurers told state legislators here for the spring meeting of NCOIL, Troy, N.Y., that the PBMs do not have a problem that needs to be fixed and that the proposed model would interfere with efforts to deliver lower cost prescription drugs to employees.
PBMs are companies that manage prescription drug benefits for insurers, self-insured employer health plans and other payers.
One member of NCOIL’s Health, Long Term Care and Health Retirement Issues Committee, state Rep. Virginia Milkey of Vermont, disagreed with the decision to postpone consideration of the PBM model.
The model would require a PBM to:
- Disclose any financial arrangements, including industry rebates.