Prescription Drug Affordability Act Overview

This document is a legislative guide for HB1697, known as the Prescription Drug Affordability Act, which aims to reform practices by Pharmacy Benefit Managers (PBMs) that adversely affect patients and pharmacies. The act proposes several measures to restore fairness and accountability in the pharmacy sector. Key provisions include banning spread pricing, prohibiting PBM steering, and mandating that all manufacturer rebates be passed directly to patients and health plans. The act also requires annual transparency reports from PBMs and health plan audits to ensure compliance and identify cost savings. Additionally, it expands support for pharmacy sustainability and patient access through increased funding for critical access pharmacies and investments in pharmacy infrastructure. The document outlines the case for action, highlighting the negative impacts of PBM consolidation on prescription drug costs and community pharmacies. Overall, HB1697 seeks to create a more equitable and transparent pharmacy benefit system that prioritizes patient care over corporate profits.