HOUSE CONCURRENT RESOLUTION 81

(By Delegates By Delegates Perdue, Hatfield, Tucker, Susman, Marshall, Longstreth, Moore, Long, Hrutkay, Frederick, DeLong, Webster, Brown, Rowan, Hall, Ashley, Border, Schadler, Sumner and Lane )

(Originating in the Committee on Health and Human Resources; referred to the Committee on Rules.)

[March 1, 2006]


Requesting that the Joint Committee on Government and Finance
study the State's need for regulation of pharmacy benefit managers.

W HEREAS , Pharmacy benefit managers cover approximately seventy- six percent of all people with pharmacy benefit plans; and
W HEREAS , Pharmacy benefit managers provide a variety of services including the administration or management of drug benefits, which may include the administration of claims, network management, formulary development and negotiation with pharmaceutical manufacturers for discounts or rebates; and
W HEREAS , The State has a compelling interest in assuring that the quality of the services delivered by pharmacy benefit managers is in the best interests of the West Virginia businesses that contract with them and the best interests of the population receiving those services; and
W HEREAS , Approximately seven states have enacted regulating legislation, which varies in scope and focus, and approximately thirty other states have considered legislation; and
W HEREAS , The policy of the State is to maintain reasonable

standards to protect the health of its citizens; and
W HEREAS , The impact of regulations must be carefully balanced between those protections and the impact on the market environment; therefore, be it
Resolved by the Legislature of West Virginia: That the Legislature hereby requests the Joint Committee on Government and Finance study the State's need for regulation for pharmacy benefit managers; and, be it
Further Resolved, That the Joint Committee on Government and Finance establish a joint pharmacy benefit managers standards committee that will undertake a comprehensive review of the various problems, or potential problems, with pharmacy benefit managers, including, but not limited to: 1. Proposals to require licensing and review of pharmacy benefit managers;
2. Proposals to require full disclosure in contracting;
3. Proposals to require transparency in contracts; 4. The possible impediment to or impact on the free trade market with regulations; and
5. The possible impact of each proposed regulation; and, be it
Further Resolved, That the joint pharmacy benefit manager committee be dedicated to comprehensively addressing services delivered to West Virginia citizens and businesses. The committee shall consist of five members each from the House of Delegates and the Senate, including the chairs of the Judiciary, Finance and Banking and Insurance committees, to be appointed by the Speaker of the House of Delegates and the President of the Senate; and, be it
Further Resolved, That joint pharmacy benefit managers standards committee shall have advisory members for the purposes of providing technical information, including but not limited to, a pharmacist, a large employer contracting with a pharmacy benefit manager, the Insurance Commissioner and representatives of industry and the business community. The advisory members shall be selected from relevant governmental agencies, including, but not limited to, the Public Employees Insurance Agency, the Bureau for Medical Services and the Insurance Commission and relevant business and industry representatives. The advisory appointments shall be made by the President of the Senate and the Speaker of the House of Delegates; and, be it
Further Resolved, That the joint committee on pharmacy benefit managers standards report to the Joint Committee on Government and Finance on or before the thirty-first day of January, 2007, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.