A New Era of Accountability for PBMs

Ohio has passed House Bill 229, a new law focused on oversight and transparency of Pharmacy Benefit Managers (PBMs). The bill passed unanimously in both chambers of the Ohio General Assembly and is awaiting the Governor for signature.

Why this matters:
PBMs play a significant role in how prescription drugs are priced, reimbursed, and accessed. HB 229 is designed to bring greater accountability to PBM practices and provide employers with more visibility into how their prescription drug programs operate.

Key highlights of HB 229 include:

• State licensing requirement: PBMs operating in Ohio will be required to obtain a license from the Ohio Department of Insurance.
• Increased transparency: PBMs must maintain detailed records related to rebates, pricing, and payments, which may be reviewed by state regulators.
• Limits on anti‑competitive practices: The law restricts PBMs from reimbursing affiliated pharmacies more than independent pharmacies for the same drugs or services.
• Clear regulatory oversight: PBMs will be regulated under a dedicated section of Ohio’s Insurance Code, strengthening enforcement authority.

Looking Ahead

The passage of House Bill 229 is a pivotal moment for the pharmacy industry as we await the governor’s decision.

While the law does not mandate specific drug prices or require employers to change PBMs, it represents a meaningful step toward increased transparency in the prescription drug supply chain.

If you have questions about this legislation, please reach out to your Fedeli Client Executive team.