ICYMI: Governor Ron DeSantis Announces Implementation of Florida’s Prescription Drug Reform Act
Sep 19, 2023
TALLAHASSEE, Fla. - Governor
Ron DeSantis and members of the Florida Cabinet approved rules to implement
several provisions of the Prescription Drug Reform Act (SB 1550). The rules
approved increase accountability among pharmaceutical middlemen known as
pharmacy benefit managers (PBMs). As signed by the Governor earlier this year,
SB 1550 institutes the most comprehensive reforms to Florida’s prescription
drug market in state history. Additional information on the bill can be found here.
committed to making Florida’s prescription drug market the most transparent and
accountable in the nation,” said
Governor Ron DeSantis. “For too long, PBMs and Big Pharma have
made extraordinary windfalls by operating behind closed doors — deciding
which prescriptions are covered, where they can be purchased, and how much they
cost. These rules will continue our efforts to lower prescription costs and
make corporations responsible to the patients they serve.”
approved by the Governor and Cabinet include all application forms for PBMs
seeking to operate in Florida after December 31, 2023. Any PBM that attempts to
continue operating in Florida on or after January 1, 2024, that has not been
approved as an insurance administrator will be subject to fines totaling
$10,000 per violation per day.
yesterday's Cabinet meeting, the Office of Insurance Regulation (OIR) formally
sent correspondence to all PBMs currently operating in Florida reinforcing the
updated requirements of Florida Law. OIR also issued additional information to
all stakeholders outlining the method by which PBMs must report appeals from
network pharmacies and pharmacists and the forms for health plans and payors to
annually attest compliance with Florida law. More information on these
announcements can be found here.
summer, the Department of Business and Professional Regulation initiated
rulemaking to implement additional provisions of SB 1550 to require Big Pharma
to provide notice when increasing the cost of prescription drugs. Prescription
drug manufacturers must disclose all price hikes that result in a 15% increase
within a calendar year or 30% increase within a three-year period both on the effective date of the increase and through an annual cumulative report citing the
contributing factor for the reported increases.
About the OIR
The Florida Office of Insurance Regulation (OIR) has primary responsibility for regulation, compliance, and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about OIR, please visit our website or follow us on Twitter @FLOIR_comm.