Bill Text: IA SF235 | 2015-2016 | 86th General Assembly | Introduced

Iowa Senate Bill 235 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act relating to the regulation of pharmacy benefits managers and including effective date provisions. (Formerly SSB 1107.)

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2015-03-23 - Withdrawn. S.J. 671. [SF235 Detail]

Download: Iowa-2015-SF235-Introduced.html

Senate File 235 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO SSB
                                     1107)

                                      A BILL FOR

  1 An Act relating to the regulation of pharmacy benefits managers
  2    and including effective date provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 510B.3, subsection 1, Code 2015, is
  1  2 amended to read as follows:
  1  3    1.  The commissioner shall enforce the provisions of this
  1  4 chapter.  After notice and hearing, the commissioner may impose
  1  5 any or all of the sanctions set out in section 507B.7 and may
  1  6 suspend or revoke a pharmacy benefits manager's certificate
  1  7 of registration as a third=party administrator pursuant to
  1  8 chapter 510, upon finding that the pharmacy benefits manager
  1  9 violated any of the requirements of this chapter or of chapter
  1 10 510 pertaining to third=party administrators.
  1 11    Sec. 2.  Section 510B.3, Code 2015, is amended by adding the
  1 12 following new subsections:
  1 13    NEW SUBSECTION.  1A.  A pharmacy benefits manager, as an
  1 14 agent or vendor of an insurance company, is subject to the
  1 15 commissioner's authority to conduct an examination pursuant to
  1 16 chapter 507.  The procedures set forth in chapter 507 regarding
  1 17 examination reports shall apply to an examination of a pharmacy
  1 18 benefits manager under this chapter.
  1 19    NEW SUBSECTION.  1B.  A pharmacy benefits manager is subject
  1 20 to the commissioner's authority to conduct an investigation
  1 21 pursuant to chapter 507B.  The procedures set forth in chapter
  1 22 507B regarding investigations shall apply to an investigation
  1 23 of a pharmacy benefits manager under this chapter.
  1 24    NEW SUBSECTION.  1C.  A pharmacy benefits manager is subject
  1 25 to the commissioner's authority to conduct an examination,
  1 26 audit, or inspection pursuant to chapter 510 for third=party
  1 27 administrators.  The procedures set forth in chapter 510 for
  1 28 third=party administrators shall apply to an examination,
  1 29 audit, or inspection of a pharmacy benefits manager under this
  1 30 chapter.
  1 31    NEW SUBSECTION.  1D.  When the commissioner conducts an
  1 32 examination of a pharmacy benefits manager under chapter 507;
  1 33 an investigation under chapter 507B; or an examination, audit,
  1 34 or inspection under chapter 510, all information received from
  1 35 the pharmacy benefits manager, and all notes, work papers, or
  2  1 other documents related to the examination, investigation,
  2  2 audit, or inspection of the pharmacy benefits manager are
  2  3 confidential records under chapter 22 and shall be accorded
  2  4 the same confidentiality as notes, work papers, investigatory
  2  5 materials, or other documents related to the examination of an
  2  6 insurer as provided in chapter 507.
  2  7    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2  8 immediate importance, takes effect upon enactment.
  2  9                           EXPLANATION
  2 10 The inclusion of this explanation does not constitute agreement with
  2 11 the explanation's substance by the members of the general assembly.
  2 12    This bill relates to the regulation of pharmacy benefits
  2 13 managers.
  2 14    The bill provides that after notice and hearing, the
  2 15 commissioner of insurance may impose any or all of the
  2 16 sanctions set out in Code section 507B.7 and may suspend
  2 17 or revoke a pharmacy benefits manager's certificate of
  2 18 registration as a third=party administrator, upon finding that
  2 19 the pharmacy benefits manager violated any of the requirements
  2 20 of Code chapter 510B (regulation of pharmacy benefits
  2 21 managers), 510 (regulation of third=party administrators), or
  2 22 507B (regulation of insurance trade practices).
  2 23    The bill provides that a pharmacy benefits manager is
  2 24 subject to the commissioner's authority to conduct an
  2 25 examination pursuant to Code chapter 507B; conduct an
  2 26 investigation pursuant to Code chapter 507B; and conduct an
  2 27 examination, audit, or inspection pursuant to Code chapter 510
  2 28 for third=party administrators.  The bill also provides that
  2 29 when the commissioner undertakes any of these activities, all
  2 30 notes, work papers, or other documents related to the activity
  2 31 are confidential records under Code chapter 22 and are accorded
  2 32 the same confidentiality as such materials related to the
  2 33 examination of an insurer as provided in Code chapter 507.
  2 34    The bill is effective upon enactment.
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