SR927: SR927 Senate Pharmacy Benefits Managers and Consumer Access to Prescription Medications Study Committee; create

26 LC 46 1506 Senate Resolution 927 By: Senators Hatchett of the 50th, Tillery of the 19th, Strickland of the 42nd, Robertson of the 29th, Goodman of the 8th and others ADOPTED SENATE A RESOLUTION Creating the Senate Pharmacy Benefits Managers and Consumer Acc ess to Prescription1 Medications Study Committee; and for other purposes.2 WHEREAS, according to the United States Office of Health Policy, the cost of prescription3 drugs has increased at rates exceeding the rate of inflation each year since 2016; and4 WHEREAS, pharmacy benefits managers administer prescription drug insurance benefits,5 negotiate with drug manufacturers and pharmacies, and establish drug formularies and6 pharmacy networks; and7 WHEREAS, pharmacy benefits managers undertake practices that have been criticized and8 investigated by industry stakeholders, including health policy experts, state attorneys general,9 and the Federal Trade Commission; and10 WHEREAS, such policies include leveraging vertical integration to steer patients to11 pharmacy benefits manager affiliate pharmacies, marking up the cost of medications at12 pharmacy benefits manager owned pharmacies, manipulating pharmacy reimbursement rates,13 and engaging in other unfair practices that harm patients, reta il pharmacies, payers, and14 employers; and15 S. R. 927 - 1 - 26 LC 46 1506 WHEREAS, in 2019, Georgia passed the first pharmacy benefits manager steering laws in16 the nation but many believe that pharmacy benefits managers con tinue to steer patients to17 pharmacy benefits manager affiliate pharmacies within this state; and18 WHEREAS, Georgia law requires that pharmacy benefits managers p ublicly report drug19 prices that are greater than 10 percent over the national average drug acquisition costs and20 such reports have revealed markups for some medications for commercial and government21 payers and markups of thousands of percent above the national a verage drug acquisition22 costs for medications used to treat multiple sclerosis, cancer, and kidney disease, among23 other medications; and24 WHEREAS, a recent study by the Georgia Center for Rural Prosper ity and Innovation at25 Abraham Baldwin Agricultural College indicates that pharmacy benefits manager practices26 pose risks to patients and independent pharmacies, including in creasing the number of27 counties in Georgia without a single pharmacy.28 NOW, THEREFORE, BE IT RESOLVED BY THE SENATE:29 (1) Creation of Senate study committee. There is created the Senate Pharmacy30 Benefits Managers and Consumer Access to Prescription Medications Study Committee.31 (2) Members and officers. The committee shall be composed of the following32 members:33 (A) The chairperson of the Senate Appropriations Committee;34 (B) The chairperson of the Senate Health and Human Services Committee;35 (C) Three other members of the Senate or experts on pharmacy benefits managers or36 consumer access to prescription medication to be appointed by t he President of the37 Senate; and38 S. R. 927 - 2 - 26 LC 46 1506 (D) The President of the Senate shall designate a member of th e committee as39 chairperson of the committee.40 (3) Powers and duties. The committee shall undertake a study of the conditions, needs,41 issues, and problems mentioned above or related thereto and recommend any action or42 legislation which the committee deems necessary or appropriate.43 (4) Meetings. The chairperson shall call all meetings of the committee. The committee44 may conduct such meetings at such places and at such times as it may deem necessary or45 convenient to enable it to exercise fully and effectively its powers, perform its duties, and46 accomplish the objectives and purposes of this resolution.47 (5) Allowances, expenses, and funding.48 (A) The legislative members of the committee shall receive the allowances provided49 for in Code Section 28-1-8 of the Official Code of Georgia Annotated.50 (B) Members of the committee who are state officials, other than legislative members,51 or state employees shall receive no compensation for their services on the committee,52 but they may be reimbursed for expenses incurred by them in the performance of their53 duties as members of the committee in the same manner as they a re reimbursed for54 expenses in their capacities as state officials or employees.55 (C) Members of the committee who are not legislators, state of ficials, or state56 employees shall receive a daily expense allowance in an amount the same as that57 specified in subsection (b) of Code Section 45-7-21 of the Offi cial Code of Georgia58 Annotated, as well as the mileage or transportation allowance a uthorized for state59 employees.60 (D) The allowances authorized by this resolution shall not be received by any member61 of the committee for more than five days unless additional days are authorized. Funds62 necessary to carry out the provisions of this resolution shall come from funds63 appropriated to the Senate; except that funds for the reimbursement of the expenses of64 state officials, other than legislative members, and for the re imbursement of the65 S. R. 927 - 3 - 26 LC 46 1506 expenses of state employees shall come from funds appropriated to or otherwise66 available to their respective agencies.67 (6) Report.68 (A) In the event the committee adopts any specific findings or recommendations that69 include suggestions for proposed legislation, the chairperson shall file a report of the70 same prior to the date of abolishment specified in this resolut ion, subject to71 subparagraph (C) of this paragraph.72 (B) In the event the committee adopts a report that does not i nclude suggestions for73 proposed legislation, the chairperson shall file the report, subject to subparagraph (C)74 of this paragraph.75 (C) No report shall be filed unless the same has been approved prior to the date of76 abolishment specified in this resolution by majority vote of a quorum of the committee.77 A report so approved shall be signed by the chairperson of the committee and filed with78 the Secretary of the Senate.79 (D) In the absence of an approved report, the chairperson may file with the Secretary80 of the Senate a copy of the minutes of the meetings of the committee in lieu thereof.81 (7) Abolishment. The committee shall stand abolished on December 1, 2026.82 S. R. 927 - 4 -