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

25 LC 52 0643 House Bill 101 By: Representatives Douglas of the 78th, Hawkins of the 27th, Evans of the 57th, Kelley of the 16th, Prince of the 132nd, and others A BILL TO BE ENTITLED AN ACT To amend Part 1 of Article 1 of Chapter 18 of Title 45 of the O fficial Code of Georgia1 Annotated, relating to the state employees' health insurance pl an, so as to provide for an2 annual public report on the amount of prescription drug rebates and other price concessions3 applied to premium reductions for state health plan participants; to provide for definitions;4 to provide for related matters; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Part 1 of Article 1 of Chapter 18 of Title 45 of the Official C ode of Georgia Annotated,8 relating to the state employees' health insurance plan, is amen ded by adding a new Code9 section to read as follows:10 "45-18-6.2.11 (a) As used in this Code section, the term:12 (1) 'Contracted entity' means any corporation licensed to tran sact accident and health13 insurance business in this state, healthcare corporation, professional claim administrator,14 independent adjusting firm, health maintenance organization, licensed pharmacy benefits15 manager, or any other entity that enters into a contract with t he board to provide16 H. B. 101 - 1 - 25 LC 52 0643 healthcare coverage or services pursuant to a state health plan, including, but not limited17 to, medical benefits, pharmacy benefits, and well-being incentives and programs.18 (2) 'Prescription drug rebates and other price concessions' me ans all remuneration19 received by or on behalf of the state health plan, including remuneration received by or20 on behalf of any contracted entity, that decrease the costs of a prescription drug covered21 by the state health plan, regardless of from whom the remunerat ion is received. Such22 term includes discounts, charge-backs or rebates, cash discounts, free goods contingent23 on a purchase agreement, up-front payments, coupons, goods in k ind, free or reduced24 price services, grants, or other price concessions or similar benefits to the extent that the25 value of these items reduce costs for the state health plan. S uch term excludes any26 remuneration, coupons, or price concessions for which the full value is passed on to the27 state health plan participants, or bona fide service fees, such as fees paid by a drug28 manufacturer to any contracted entity that represent fair marke t value for a bona fide,29 itemized service actually performed on behalf of such drug manufacturer that such drug30 manufacturer would otherwise perform or contract for in the abs ence of the service31 arrangement and that are not passed on in whole or in part to a client or customer of such32 entity.33 (3) 'State health plan' means:34 (A) The state employees' health insurance plan established pur suant to Article 1 of35 Chapter 18 of Title 45;36 (B) The health insurance plan for public school teachers estab lished pursuant to37 Subpart 2 of Part 6 of Article 17 of Chapter 2 of Title 20;38 (C) The health insurance plan for public school employees esta blished pursuant to39 Subpart 3 of Part 6 of Article 17 of Chapter 2 of Title 20; and40 (D) The health benefits plan established for members, employees, and retirees of the41 Board of Regents of the University System of Georgia pursuant t o Code42 Sections 20-3-31, 20-3-51, and 31-2-4.43 H. B. 101 - 2 - 25 LC 52 0643 (b) Beginning July 1, 2026, and annually thereafter, the board shall prepare an annual44 report on the amount of prescription drug rebates and other pri ce concessions, measured45 in dollars and by percentage, applied to premium reductions for state health plan46 participants. Such annual report shall be published and mainta ined on the department's47 public website."48 SECTION 2.49 All laws and parts of laws in conflict with this Act are repealed.50 H. B. 101 - 3 -