House Bill 798

Chair's Name: Roger Williams

Committee: Regulated Industries

House Sponsor: Austin Scott

HB 798 would require pharmacy benefit managers to be licensed. The licenses will be issued by the Commissioner of Insurance on an annual basis. The Commissioner may impose by rule or regulation the reasonable qualifications that will be necessary to obtain a license. The Commissioner may refuse, suspend, or revoke a license if the applicant/holder has committed certain wrongful actions listed in the bill. In these situations, the applicant/holder can seek an administrative hearing. Once a license is revoked, the licensee may not reapply for five years. The Commissioner may also issue temporary probationary licenses. Pharmacy benefit managers may only market or administer products which are approved in Georgia. The Commissioner has the discretion to assess a penalty or fine against any business entity acting as a pharmacy benefits manager without a license.

This committee substitute comes to the Floor under the Open Rule. The Sponsor will offer a floor amendment removing the proposed “26-4-212” from the bill (Page 3, lines 24-29).

Chairman Williams’ opinion of this legislation:

This bill adds a new article to be known as “Georgia Pharmacy Practice Act”, which provides that pharmacy benefit managers must be regulated and licensed by the Department of Insurance. It further identifies licensing criteria and procedure as well as provides for rules and regulations. Currently, everyone in the health care industry is licensed and regulated except pharmacy benefit managers, who dictate which medicine and at which price can be sold in pharmacies.