Florida’s Prescription Drug Reform Act, Senate Bill 1550 (“Act”), which took effect on July 1, 2023, includes anti patient steering provisions that Florida-based pharmacies and pharmacists should be aware of. Patient steering is a practice employed by pharmacy benefit managers (“PBMs”) to channel a prescription to an affiliated pharmacy, or pharmacy in which a PBM has a common ownership interest in. This is a practice that is of serious concern to both independent providers and lawmakers throughout the country. Patient steering has also become a prevalent practice in the retail, mail-order, and specialty pharmacy spaces and is also a practice that is difficult to police. Florida joins a host of legislative activity throughout the country both at the federal and state levels, aimed at curbing previously unchecked PBM abuses like patient steering. Governor DeSantis’s legislative action aligns with heightened scrutiny throughout the country including at the federal level. For example, earlier in the year the United States Senate Committee on Finance conducted the bipartisan hearing “[PBMs] and the Prescription Drug Supply Chain: Impact on Patients and Taxpayers” and Committee Chairman Senator Ron Wyden and Ranking Member Senator Mike Crapo recently released their Legislative Framework to Address PBMs and Prescription Drug Supply Chain.
The Act includes three key provisions designed to prohibit patient steering: (1) a prohibition on mandatory mail order requirements, (2) a prohibition on networks consisting exclusively of PBM-affiliated pharmacies, and (3) a prohibition on networks that require a pharmacy to meet more stringent standards than required by state and federal law. Provisions prohibiting PBMs from forcing patients to receive their medication in the mail and creating exclusive networks for their affiliated and commonly owned pharmacies will help ensure that Florida’s independent pharmacies can service their patients without improper PBM interference.
The Act’s anti-steering provisions are a positive and significant development for patients and providers in Florida. They represent substantial progress in addressing PBM misconduct, particularly the practice of patient steering, which causes significant issues for patients and providers nationwide. By enforcing these provisions, Florida empowers pharmacies to serve their patients without interference from PBMs engaging in improper practices.
Pharmacies, pharmacists, and patients in Florida should familiarize themselves with the Act’s anti-patient steering provisions. Understanding these new laws can help them navigate the complex pharmacy-PBM landscape more effectively, promoting fairness and patient choice.
How Frier Levitt Can Help
Frier Levitt represents numerous pharmacies across the United States in challenging PBM audits, network access, reimbursement practices and complex issues such as DIR fees. Our attorneys have extensive knowledge in all aspects of the pharmacy-PBM relationship. Contact us to speak with an attorney about how your pharmacy can leverage the various applicable laws and protections afforded to pharmacies that regulate PBM conduct.
