HB101: HB101 State employees; annual public report on the amount of prescription drug rebates and other price concessions applied to premium reductions; provide

Right now, drug manufacturers and pharmacy benefit managers give health plans various rebates, discounts, and other payments that reduce the cost of covered prescription drugs, but Georgia's state health plans do not have to publicly report how much of that savings actually goes toward lowering premiums for participants. HB101 adds a new section to Georgia law (O.C.G.A. § 45-18-6.2) requiring the board overseeing these plans to prepare and publish an annual report on that amount. The bill defines 'prescription drug rebates and other price concessions' broadly, covering discounts, cash rebates, coupons, free goods, and similar payments that lower drug costs, while excluding amounts already passed on to participants or legitimate service fees. It applies to the state employees' health plan, the plans for public school teachers and other school employees, and the University System of Georgia's health benefits plan. Starting July 1, 2026, and every year after, the board must post the report, measured in dollars and by percentage, on the Department of Community Health's public website.

• Adds a new Georgia law (O.C.G.A. § 45-18-6.2) requiring an annual public report on prescription drug rebates and price concessions applied to premium reductions.
• Defines 'contracted entity' broadly to include insurers, health maintenance organizations, pharmacy benefit managers, and other companies that contract with the board to provide health coverage.
• Defines 'prescription drug rebates and other price concessions' to include discounts, rebates, coupons, free goods, and similar payments that lower drug costs for the state health plan.
• Covers four different state-run health plans: the state employees' plan, two public school employee plans, and the University System of Georgia's health benefits plan.
• Requires the report to be measured both in dollar amounts and by percentage, starting July 1, 2026, and every year after.
• Requires the report to be published and kept available on the responsible department's public website.

State employees, public school teachers and other school employees, University System of Georgia employees and retirees, and their families who participate in these state health plans, along with the board that administers the plans and the insurers, pharmacy benefit managers, and other contracted entities that work with them.

Participants in these state health plans would get a yearly public accounting of how much of the money saved through drug industry rebates and discounts is actually being used to reduce their premiums, information that is not currently made public in this form.

• Section 1 adds new Code Section 45-18-6.2 to Title 45, covering the state employees' health insurance plan.
• Subsection (a)(1) defines 'contracted entity' to include insurers, health maintenance organizations, pharmacy benefit managers, and other companies contracting with the board.
• Subsection (a)(2) defines 'prescription drug rebates and other price concessions,' excluding amounts already passed to participants and bona fide service fees paid at fair market value.
• Subsection (a)(3) lists four 'state health plans' covered: the state employees' plan, two public school employee health plans, and the Board of Regents' health benefits plan.
• Subsection (b) requires the board to prepare an annual report starting July 1, 2026, measured in dollars and by percentage, and publish it on the department's public website.
• Section 2 repeals any conflicting laws.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-06House Committee Favorably Reported (House)
3. 2025-01-28House Second Readers (House)
4. 2025-01-27House First Readers (House)
5. 2025-01-17House Hopper (House)

• Demetrius Douglas (D, HD-078)Primary sponsor
• Lee Hawkins (R, HD-027)
• Stacey Evans (D, HD-057)
• Trey Kelley (R, HD-016)
• Brian Prince (D, HD-132)
• Karen Bennett (D, HD-094)

• prescription drug costs
• state employee health insurance
• public school employee benefits
• health care transparency
• university system benefits