LouisianaLouisiana law sets future rules for pharmacy benefit managers
Louisiana's law sets future rules for drug benefit managers, but most provisions take effect only if Section 4 of Senate Bill 401 becomes law.
What it does
PBMs must pass manufacturer rebates and prohibited income to their health plan clients. They may earn only set service fees or written performance bonuses and must act for plans and enrollees.
When a plan changes a covered drug's tier or cost sharing at the start of a plan year, the same terms continue for 60 days after notice. During a policy year, PBMs also face limits on removing drugs or raising costs, with stated exceptions.
PBMs cannot block pharmacies from offering patients payment help, drug-cost information, or other listed services. They also cannot punish pharmacies for sharing data as the law allows.
The commissioner and PBM clients may inspect records and request detailed payment, claims, and rebate information. PBMs must respond and certify that their information is accurate and complete.
Argument forPeople taking covered drugs may have time to adjust when a plan changes coverage, since some changes to drug tiers or costs must wait or include a 60-day transition.
Argument againstPlans could have fewer ways to structure PBM payments because the law limits PBM income to set service fees and written performance bonuses.
More detail
PBMs must act for health plans and enrollees, pass rebates and prohibited income to plan clients, and follow limits on how they earn money. These rules cover PBMs doing business in Louisiana and their work for health insurers, health plans, and plan enrollees. A PBM may favor a brand drug over an equivalent generic or biosimilar only if the brand has a lower net cost and that savings lowers patient costs or premiums. These rules apply only where federal law allows. The duty and compensation rules take effect January 1, 2027, only if Section 4 of Senate Bill 401 is enacted and becomes effective.
PBMs must keep certain drug coverage and cost-sharing terms in place and may not require certain higher-cost or affiliated-manufacturer drugs. These rules apply to insured people taking covered prescription drugs and to PBMs managing their drug coverage. When a plan-year formulary change affects a covered drug's tier or cost sharing, the same terms continue for 60 days after the insurer notifies the insured. During a policy year, a PBM generally may not remove a drug or make it more costly for someone taking it, with exceptions for specified safety, supply, and market changes. Federal law may limit where these rules apply. These formulary rules take effect January 1, 2028, only if Section 4 of Senate Bill 401 is enacted and becomes effective.
PBMs and their affiliates may not block pharmacies from offering listed patient services or sharing data as allowed, or penalize pharmacies for doing so. These rules cover pharmacists and pharmacies dealing with a PBM or its affiliate, subsidiary, or agent. Listed services include payment options, drug-cost and alternative-medicine information, prior-authorization help, and lawful help with out-of-pocket costs. A pharmacy may share claims or other health transaction data with a patient, the patient's providers, or a third party the patient authorizes; privacy rules still apply. These protections take effect January 1, 2028, only if Section 4 of Senate Bill 401 is enacted and becomes effective.
The insurance commissioner and PBM clients may audit PBMs and request records; PBMs must provide requested information and certify that it is accurate and complete. These audit rules cover licensed PBMs and the commissioner, insurers, and plans that contract with them. The commissioner and a contracted health insurer or plan may audit a licensed PBM once per calendar year under this provision. The law keeps specified confidential business information from public disclosure, while allowing the commissioner to share it with the Prescription Drug Affordability Board under that board's confidentiality rules. These provisions take effect upon the governor's signature, but only if Section 4 of Senate Bill 401 is enacted and becomes effective; a PBM must provide requested information within 30 days.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 12Signed by the Governor Jeff Landry. Becomes Act No. 914.Became Law
- Jun 12Effective date: See Act.
- Jun 1Enrolled. Signed by the President of the Senate.To Governor
- Jun 1Signed by the Speaker of the House.
- Jun 1Sent to the Governor by the Secretary of the Senate on 6/2/2026.Minor
- May 31Conference Committee Report read, roll called, yeas 76, nays 13. The Conference Committee Report was adopted.
- Vote recorded ADOPT CONFERENCE REPORT (#1799). Result: pass.Lower
- May 31Notice House adopted the Conference Committee Report.
- May 29Conference committee report received.
- Vote recorded ADOPT (#1575). Result: pass.Upper
- May 29Rules suspended.
- May 29Conference Committee Report read; adopted by a vote of 36 yeas and 0 nays.
- May 29Conference Committee report received. Lies over under the rules.
- May 29Notice of Senate adoption of Conference Committee Report.
- May 29Scheduled for floor debate on 05/31/2026.
- May 26Senate conference committee members appointed: Talbot, Bass, and Harris.
- May 26Notice of Senate conferees appointed.
- May 25Notice of Senate rejecting House amendments.
- May 25House conferees appointed: Turner, Firment, and Miller.
- May 25Notice House Conference Committee members appointed.
- May 20Amendments proposed by the House read and rejected by a vote of 34 yeas and 0 nays.
- Vote recorded REJECT (#1061). Result: pass.Upper
- May 19Read third time by title, roll called on final passage, yeas 82, nays 14. Finally passed, ordered to the Senate.Passed House
- Vote recorded FINAL PASSAGE (#1380). Result: pass.Lower
- May 19Received from the House with amendments.Minor
- May 18Read by title, passed to 3rd reading.Minor
- May 18Scheduled for floor debate on 05/19/2026.
- May 13Reported without Legislative Bureau amendments.
- May 12Reported favorably (12-0). Referred to the Legislative Bureau.Minor
- May 5Read by title, amended, recommitted to the Committee on House and Governmental Affairs.
- Apr 29Reported with amendments (10-4). To be recommitted to the Committee on House and Governmental Affairs.Minor
- Apr 21Read by title, under the rules, referred to the Committee on Insurance.Minor
- Apr 20Received in the House from the Senate, read by title, lies over under the rules.
- Apr 15Called from the Calendar.
- Vote recorded FINAL PASSAGE (#354). Result: pass.Upper
- Apr 15Senate floor amendments read and adopted. Read by title and passed by a vote of 37 yeas and 0 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.Passed Senate
- Apr 8Senate floor amendments read and adopted.
- Apr 8Read by title and returned to the Calendar, subject to call.
- Apr 7Read by title. Committee amendments read and adopted. Ordered engrossed and passed to third reading and final passage.
- Apr 1Reported with amendments.Minor
- Mar 9Introduced in the Senate; read by title. Rules suspended. Read second time and referred to the Committee on Insurance.Minor
- Feb 27Prefiled and under the rules provisionally referred to the Committee on Insurance.Introduced
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