Sen. Hicks wins committee approval for legislation putting financial interests of patients first in Rx pricing

OKLAHOMA CITY – Sen. Carri Hicks has received approval from the Senate Retirement and Insurance Committee for Senate Bill 1581, requiring pharmacy benefit managers (PBMs) to make patients and their insurance companies the top consideration when negotiating prescription drug plans. PBMs develop formularies that determine what drugs are included and at what price, and sometimes use their leverage to threaten to exclude lower-priced medications that could reduce their own profits, instead of keeping costs down for patients and insurance providers.

“Many Oklahomans have no idea of the role PBMs play in determining available drugs and prices and would probably be shocked to learn that just three PBMs control 80 percent of the entire U.S. prescription medication market,” said Hicks, D-Oklahoma City. “PBMs are supposed to negotiate on behalf of patients, but often there’s an inherent conflict of interest because they can make more money themselves when medication prices are higher. My legislation would require PBMs to put the financial interests of patients and insurance companies first.”

Under SB 1581, PBMs would be required by law to maintain a fiduciary duty to the insurers and insureds they serve.

“Oklahoma consumers should not have to pay artificially higher prescription drug prices,” Hicks said. “This bill places people over politics.”

Hicks’ bill next moves to the full Senate for further consideration.

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For more information, contact:  Sen. Carri Hicks at 405-521-5543 or Carri.Hicks@oksenate.gov.