46B49C803BD7AB61872584FE0070EC4D Hearing Summary

Representative Jaquez Lewis and Representative Mullica, bill sponsors, presented House Bill 20-1078 to the committee.  The bill establishes certain requirements concerning the rates paid by pharmacy benefit management (PBM) firms to pharmacies.  It applies to contracts between pharmacies and PBM firms in effect beginning January 1, 2021.  Specifically, the bill states that a PBM firm:



•   cannot reimburse a clean claim from a pharmacy any less than the firm reimburses any affiliate for the same services;

•   cannot reimburse a pharmacy less than four dollars for a reasonable dispensing fee;

•   must reimburse a clean claim using a methodology described in the bill; and

•   may not retroactively reduce payment on a clean claim submitted by a pharmacy.



Insurance carriers must annually audit contracted PBM firms for compliance.  Failure to do so is designated as an unfair method of competition and an unfair or deceptive act in the business of insurance.

Amendments L.005 and L.006 were distributed to committee members (Attachments A and B).

Representative Lontine proceeded with witness testimony on the bill.

Dr. Emily Zadvorny, Colorado Pharmacists Society, testified in support of the bill.  Gina Moore, Colorado Pharmacists Society and the University of Colorado School of Pharmacy, testified in support of the bill.  Dr. Zadvorny responded to committee questions.  Representative Jaquez Lewis responded to committee questions.

Patrick Boyle, Pharmaceutical Care Management Association, testified in opposition to the bill without amendments.  Mr. Boyle responded to committee questions.

Derek Burns, Rocky Mountain Cancer Centers, testified in support of the bill.  Sam Maya, representing himself, testified in support of the bill.  Jennifer Palazzolo, Flatirons Family Pharmacy, testified in support of the bill and distributed a handout to the committee (Attachment C).  Lucas Smith, Buena Vista Drug, testified in support of the bill and distributed a handout to the committee (Attachment D).  

Ms. Palazzolo and Mr. Burns responded to committee questions.

Kristin Holmes, Capitol Heights Pharmacy, testified in support of the bill.  Joshua Jones, representing himself, testified in support of the bill. C.J. Shovlin, WB Drug, testified in support of the bill.

Mr. Jones, Ms. Holmes, and Mr. Shovlin responded to committee questions.

Ky Davis, Rocky Ford Pharmacy, testified in support of the bill and distributed a handout to the committee (Attachment E).  Selena Owen, Gem Pharmacy and Rx Plus Independent Pharmacies, testified in support of the bill.  Julia Uhknovsky, Arvada Pharmacy, testified in support of the bill.  Nicholas Shortridge, representing himself, testified in support of the bill.  

Mr. Davis and Ms. Owen responded to committee questions.

Amendment L.007 was distributed to the committee (Attachment F).  Representatives Mullica and Jaquez Lewis described the amendment and responded to committee questions.

Representative Mullica explained amendment L.006 to the committee.

Representatives Mullica and Jaquez Lewis gave closing remarks on the bill.

Committee members commented on the bill.