Senate
Study
Bill
1107
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
PETERSEN)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
pharmacy
benefits
managers
1
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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S.F.
_____
Section
1.
Section
510B.3,
subsection
1,
Code
2015,
is
1
amended
to
read
as
follows:
2
1.
The
commissioner
shall
enforce
the
provisions
of
this
3
chapter
.
After
notice
and
hearing,
the
commissioner
may
impose
4
any
or
all
of
the
sanctions
set
out
in
section
507B.7
and
may
5
suspend
or
revoke
a
pharmacy
benefits
manager’s
certificate
of
6
registration
as
a
third-party
administrator
pursuant
to
chapter
7
510,
upon
finding
that
the
pharmacy
benefits
manager
violated
8
any
of
the
requirements
of
this
chapter,
or
of
chapter
510
9
pertaining
to
third-party
administrators,
or
that
the
pharmacy
10
benefits
manager
is
not
competent,
trustworthy,
financially
11
responsible,
or
of
good
personal
and
business
reputation.
12
Sec.
2.
Section
510B.3,
Code
2015,
is
amended
by
adding
the
13
following
new
subsections:
14
NEW
SUBSECTION
.
1A.
A
pharmacy
benefits
manager
is
subject
15
to
the
commissioner’s
authority
to
conduct
an
examination
16
pursuant
to
chapter
507
and
to
chapter
507B
relating
to
unfair
17
insurance
trade
practices.
18
NEW
SUBSECTION
.
3.
Failure
of
a
pharmacy
benefits
manager
19
to
respond
to
inquiries
from
the
commissioner
in
accordance
20
with
an
investigation
to
determine
compliance
with
this
chapter
21
shall
result
in
revocation
of
the
pharmacy
benefits
manager’s
22
certification
as
a
third-party
administrator
as
provided
in
23
section
510B.2.
24
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
25
immediate
importance,
takes
effect
upon
enactment.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
relates
to
the
regulation
of
pharmacy
benefits
30
managers.
31
The
bill
provides
that
after
notice
and
hearing,
the
32
commissioner
of
insurance
may
impose
any
or
all
of
the
33
sanctions
set
out
in
Code
section
507B.7
and
may
suspend
34
or
revoke
a
pharmacy
benefits
manager’s
certificate
of
35
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1631XC
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S.F.
_____
registration
as
a
third-party
administrator,
upon
finding
that
1
the
pharmacy
benefits
manager
violated
any
of
the
requirements
2
of
Code
chapter
510B
(regulation
of
pharmacy
benefits
3
managers),
510
(regulation
of
third-party
administrators),
4
or
507B
(regulation
of
insurance
trade
practices).
The
bill
5
provides
that
a
pharmacy
benefits
manager
is
subject
to
the
6
commissioner’s
authority
to
conduct
an
examination
pursuant
to
7
Code
chapter
507
and
to
Code
chapter
507B.
8
The
bill
also
provides
that
failure
of
a
pharmacy
benefits
9
manager
to
respond
to
inquiries
from
the
commissioner
in
10
accordance
with
an
investigation
to
determine
compliance
under
11
Code
chapter
510B
shall
result
in
revocation
of
the
pharmacy
12
benefits
manager’s
required
certification
as
a
third-party
13
administrator.
14
The
bill
is
effective
upon
enactment.
15
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