NACDS issued a press release acknowledging the favorable opinion (KP-0408) released by Texas Attorney General Ken Paxton (R) on February 5, 2024. This opinion addresses the enforceability of two laws passed in 2021 against health benefit insurers and PBMs. Paxton’s opinion clarifies how HB 1763 and HB 1919 regulate certain contracts between ERISA issuers, their PBMs, and pharmacies. It also addresses steering practices concerning affiliated pharmacies, clarifying that ERISA does not preempt HB 1763 and HB 1919, as these laws do not dictate plan choices or add requirements to a beneficiary’s status. At the request of pharmacy groups, State Senator Charles Schwertner (R), a physician and pharmacist who chairs the Senate Business and Commerce Committee, sent a letter to the Attorney General requesting this opinion.
Also in Texas, Speaker Dustin Burrows (R) finally posted the new chairs and the House Committee membership lists on February 13, 2025.
Also in Texas, Sen. Bryan Hughes, and Rep. Cody Harris (R), two champions of PBM reforms, filed identical bills, SB 1354 and HB 2978 will establish a rate floor for the commercial market.
Also in Texas, Sen. Bryan Hughes also filed SB 1236, PBM reform legislation that addresses clawbacks, establishes audit guardrails, and would prohibit a health plan or PBM from denying or reducing a claim payment to a pharmacy or pharmacist after adjudication under certain circumstances. The bill also protects patient choice to pharmacies by ensuring that pharmacies have a voice in their network and contract discussions.
For more information, contact NACDS’ Mary Staples at 817-442-1155.