Effective July 1, pharmacy benefit managers (PBMs) operating in Kansas became subject to a new law addressing prescription pricing transparency and regulatory oversight. The Kansas Consumer Prescription Protection and Accountability Act (SB20), adopted in April, gives the state more administrative authority over PBM licensing, rebate reporting, auditing, and monitoring of business practices.
Section 5 of the law requires PBMs pass all prescription drug rebates back to applicable health plan rather than retrain as profit. The law also prohibits the practice known as spread pricing, in which PBMs charge health plans more for a prescription than they reimburse the pharmacy and keep the difference. Both provisions are intended to help reduce prescription drug costs for employer-sponsored health plans and their members.
The most controversial aspect of Section 5 of the law is a required $10.50 dispensing fee applied to all prescriptions filled by a Kansas pharmacy. Opponents of this provision fear this cost will be passed onto the consumer; while supporters of the law believe the net effect of rebates returns and the elimination of spread pricing offset the dispensing fee.
Early feedback from Bukaty clients indicates consumers are not experiencing noticeable changes in prescription costs since the law took effect July 1. The long-term impact on health plan renewals, new business pricing, and overall prescription drug costs remains uncertain and will become clearer as the market adjusts to the new requirements. Bukaty Companies will continue to monitor this issue and communicate to clients as more is known.
