SB 773: Pharmacy benefit managers; modifying definitions; prohibiting certain circumstances; requiring nonpayment under providing venue for certain court proceeding; allowing Attorney General to obtain certain information. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 12 edits

MAJOR

The bill was revised from the House version to the Senate floor version, primarily updating the header information and refining the definitions of key terms related to pharmacy benefit managers (PBMs). The substantive policy content regarding PBM regulation appears to remain consistent, with the main differences being formatting and version tracking.

Scope change

The bill's scope remains focused on regulating pharmacy benefit managers and related entities in Oklahoma, with no substantive changes to the regulatory framework itself.

TECHNICAL

Header information changed from 'HOUSE OF REPRESENTATIVES' to 'SENATE FLOOR VERSION' with updated session date and bill type designation from 'ENGROSSED SENATE' to 'COMMITTEE SUBSTITUTE'.

DEFINITION

Definition of 'Covered entity' was expanded to include 'health program administered by the state in the capacity of providing health coverage' and 'employer, labor union, or other group of persons that provides health coverage to persons in this state'.

Definition of 'Pharmacy benefits manager' was expanded to include persons or entities acting on behalf of a PBM in contractual or employment relationships, as well as managed care companies, nonprofit hospitals, and health programs administered by state departments.

Definition of 'Pharmacy benefits management' was clarified to explicitly include negotiating pricing and terms with drug manufacturers and providers.

Definition of 'Provider' was expanded to include an agent or representative of a pharmacy, not just the pharmacy itself.

Definition of 'Retail pharmacy network' was added as a new term to clarify networks where pharmacies primarily fill prescriptions via retail storefront locations.

Definition of 'Rural service area' was added as a new term, defined as ZIP codes with population density less than 1,000 individuals per square mile.

Definition of 'Suburban service area' was added as a new term, defined as ZIP codes with population density between 1,000 and 3,000 individuals per square mile.

Definition of 'Urban service area' was added as a new term, defined as ZIP codes with population density greater than 3,000 individuals per square mile.

Definition of 'Spread pricing' was added as a new term to describe pricing models where the contracted price differs from the amount paid to pharmacies.

Exemption language was modified to clarify that self-funded employer health plans without third-party utilization and unrelated to the employer's own pharmacy are not considered PBM entities.

Exemption language was modified to clarify that pharmacies providing discount cards or programs for exclusive use at their own location are not considered PBM entities.

Committee Substitute → Floor (House) · 3 edits

MINOR

The bill was amended from a Committee Substitute version to the House Floor version, primarily changing the document header and formatting while retaining the same substantive content regarding pharmacy benefit manager regulations. The policy provisions remain unchanged, focusing on definitions, compliance requirements, and enforcement mechanisms for PBMs in Oklahoma.

Scope change

No substantive change to the bill's scope or applicability; only formatting and header information were modified to reflect the House Floor version.

TECHNICAL

Document header changed from 'Committee Substitute' to 'House of Representatives - Floor Version' with updated session information

Page numbering and formatting markers were updated to reflect House Floor version standards

POLICY

All substantive policy content regarding pharmacy benefit manager definitions, compliance requirements, and enforcement provisions remains identical to the Committee Substitute version

Enrolled (final version) → Committee Substitute · 3 edits

MINOR

The bill text was reformatted from an enrolled version to a committee substitute version, with line number annotations added. The substantive legislative content regarding pharmacy benefit manager regulations appears unchanged, though some formatting inconsistencies were corrected. No new policy provisions, definitions, or enforcement mechanisms were added or removed in this version.

TECHNICAL

Header formatting changed from 'ENROLLED SENATE' to 'COMMITTEE SUBSTITUTE' with line number annotations added throughout the document.

Page number references were reorganized and some were removed during the formatting conversion.

Minor spacing and indentation adjustments were made to the bill text while preserving all substantive language.

Introduced → Engrossed · 6 edits · Mar 25, 2025

MODERATE

This bill amends Oklahoma's Pharmacy Benefit Manager (PBM) regulations by updating definitions, expanding the Attorney General's oversight authority, and clarifying which entities are excluded from PBM classification. The changes strengthen consumer protections by ensuring PBMs comply with existing pharmacy choice laws and preventing deceptive practices.

Scope change

The bill expands the Attorney General's authority to review and approve PBM retail pharmacy network access and adds new enforcement provisions including penalties and court reporter requirements.

DEFINITION

Updated the definition of 'Pharmacy benefits manager' to explicitly include entities licensed by the Insurance Department to perform PBM services

Reorganized and renumbered definitions to include 'Retail pharmacy network' as a new definition

ENFORCEMENT

Added requirement for Attorney General to review and approve retail pharmacy network access for all PBMs to ensure compliance with Section 6961

Added prohibition against PBMs using untrue, deceptive, or misleading advertisements, promotions, or solicitations

Added provisions establishing fines, penalties, and requirements for court reporters in enforcement proceedings

TECHNICAL

Updated statutory references to include additional sections and amendments from Chapter 38, O.S.L. 2022 and Chapter 306, O.S.L. 2024

Engrossed → Enrolled (final version) · 1 edit · May 6, 2025

MINOR

The bill transitions from an 'Engrossed' draft version to an 'Enrolled' final version, indicating it has passed both legislative chambers and is ready for the governor's signature. The substantive content remains largely the same, with the primary change being the removal of page headers and formatting adjustments that occurred during the final legislative process. No new policy provisions, definitions, or requirements were added or removed between these two versions.

TECHNICAL

Page headers and formatting were removed or adjusted as the bill moved from draft to final enrolled version, with no substantive policy changes.

Pharmacy benefit managers; modifying definitions; prohibiting certain circumstances; requiring nonpayment under providing venue for certain court proceeding; allowing Attorney General to obtain certain information. Effective date.

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