All Roll Calls
Yes: 248 • No: 0
LouisianaHB 2642025 Regular SessionHouseWALLET
INSURANCE/HEALTH: Provides for transparency and compensation practices relative to pharmacy benefit managers (EN +$90,000 SG EX See Note)
Sponsored By: Michael Charles Echols (Republican)
Signed by Governor
Insurance
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
Patients gain protection against pharmacy steering
Pharmacy benefit managers cannot use information from filling prescriptions to steer patients toward pharmacies they own, control, or favor. This also covers pharmacies with specified business ties or contracts to process prescriptions for the manager. Managers cannot pressure patients or punish them for their pharmacy choice. These protections do not set prescription prices or guarantee savings.
Local pharmacies gain minimum payment protections
Pharmacy benefit managers cannot pay contracted pharmacists or covered local pharmacies below acquisition cost for covered drugs, devices, or services. Local pharmacies are Louisiana-based businesses with fewer than 10 retail outlets under the same corporate umbrella. Beginning January 1, 2026, local-pharmacy drug claims must use the public National Average Drug Acquisition Cost benchmark or a commissioner-approved alternative; the Office of Group Benefits is exempt. Pricing adjustments must target payment errors of no more than 2% per drug identification number; alternatives must produce errors no more often and smaller in size than the standard benchmark. Pharmacies generally have 15 days after payment to appeal with a wholesaler invoice showing the drug name, identification number, purchase date, and cost; confirmed underpayments require notice to affected pharmacies and added payments in the next payment cycle.
Drug managers face pricing and fee bans
The law bans spread pricing: hidden prescription markups above pharmacy payments, after accounting for the manager’s fee. It also bans effective-rate pricing for Louisiana-based pharmacies with fewer than 10 retail outlets under the same corporate umbrella. Enforcement of the broader bans on spread pricing and effective-rate pricing begins January 1, 2027. Insurers and pharmacy benefit managers also cannot directly or indirectly charge pharmacies or pharmacists fees. The law sets no patient savings amount.
Drug managers face stronger state oversight
Licensed pharmacy benefit managers must report prior-year rebates, fees, price concessions, patient rebates, pharmacy payments, services, and corporate ownership by March 1. Louisiana publishes reports within 60 days, while keeping plan identities and specific drug prices and rebates confidential. The insurance commissioner can audit records and review compensation arrangements to assess whether pharmacy payments are fair and reasonable. Managers must also submit sworn compliance certifications by December 31, and a new advisory council supports state monitoring. The law repeals four older pharmacy-related provisions, but the supplied text does not explain those repeals’ effects.
Drug rebates must benefit health plans
Pharmacy benefit managers manage prescription benefits for health plans. They must pass all drugmaker rebates and other covered price concessions to plan sponsors, rather than keeping a share. Plans must identify how these savings support lower premiums, lower patient drug costs, or broader coverage. Managers must also list their fees in writing in contracts with insurers or plans. The law sets no savings amount for individual members.
Drugmakers must report major price increases
Drugmakers must notify Louisiana’s insurance commissioner within 30 days when a brand-name drug’s wholesale price per unit rises more than 15% over 12 months. Reporting also covers generic and biosimilar price increases that meet standards set by the commissioner. New drugs introduced in Louisiana above the Medicare Part D specialty-drug cost threshold also require notice. Reports must identify the drug and explain the increase, including whether rebate or drug-coverage-list demands drove it. Reporting does not cap prices or guarantee patient savings.
Stronger enforcement can return policyholder money
Louisiana’s attorney general can independently investigate and enforce pharmacy benefit manager violations as unfair competition or unfair practices. The attorney general can hire outside lawyers, seek restitution to the state and triple damages, and recover attorney fees. Money collected goes into a new Pharmacy Benefit Manager Enforcement Fund. With legislative spending approval, the fund pays insurance commissioner and attorney general enforcement costs first. Money left at each fiscal year’s end returns to policyholders through a program those officials design; no payment amount is set.
Sponsors & Cosponsors
Sponsor
Michael Charles Echols
Republican • House
Cosponsors
Barbara Carpenter
Democratic • House
Gerald "Beau" Beaullieu IV
Republican • House
Beryl Amedée
Republican • House
Beth Anne Billings
Republican • House
Delisha Boyd
Democratic • House
Dennis Bamburg Jr.
Republican • House
Emily Chenevert
Republican • House
Josh Carlson
Republican • House
Kim Carver
Republican • House
Kimberly Landry Coates
Republican • House
Larry A. Bagley
Republican • House
Michael Robert Bayham Jr.
Republican • House
R. Dewith Carrier
Republican • House
Rhonda Gaye Butler
Republican • House
Robby Carter
Democratic • House
Stephanie H. Berault
Republican • House
Tehmi Jahi Chassion
Democratic • House
Tony Bacala
Republican • House
Vincent E. Cox III
Republican • House
Roll Call Votes
House vote • 6/12/2025
Read by title, roll called, yeas 100, nays 0, Senate amendments concurred in.
Yes: 100 • No: 0
Senate vote • 6/9/2025
The amended bill was read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
Yes: 38 • No: 0
House vote • 5/22/2025
Read third time by title, roll called on final passage, yeas 86, nays 0. Finally passed, title adopted, ordered to the Senate.
Yes: 86 • No: 0
House vote • 5/20/2025
Reported with amendments
Yes: 11 • No: 0
House vote • 5/14/2025
Reported with amendments
Yes: 13 • No: 0
Actions Timeline
Signed by the Governor. Becomes Act No. 474.
6/20/2025HouseEffective date: 06/20/2025.
6/20/2025HouseSent to the Governor for executive approval.
6/13/2025HouseCalled from the calendar.
6/12/2025HouseRead by title, roll called, yeas 100, nays 0, Senate amendments concurred in.
6/12/2025HouseEnrolled and signed by the Speaker of the House.
6/12/2025HouseSigned by the President of the Senate.
6/12/2025SenateRules suspended, called out of its regular order.
6/11/2025HouseCalled from the calendar.
6/11/2025HouseRead by title, returned to the calendar.
6/11/2025HouseNotice given.
6/11/2025HouseScheduled for concurrence on 06/12/2025.
6/11/2025HouseRead by title, returned to the calendar.
6/10/2025HouseNotice given.
6/10/2025HouseScheduled for concurrence on 06/11/2025.
6/10/2025HouseRules suspended. Called from the Calendar.
6/9/2025SenateThe amended bill was read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
6/9/2025SenateReceived from the Senate with amendments.
6/9/2025HouseScheduled for concurrence on 06/10/2025.
6/9/2025HouseRules suspended.
6/8/2025SenateSenate floor amendments read and adopted.
6/8/2025SenateRead by title and returned to the Calendar, subject to call.
6/8/2025SenateReported with amendments. Rules suspended. Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.
6/4/2025SenateReported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.
6/4/2025SenateRead second time by title and referred to the Committee on Insurance.
5/28/2025Senate
Bill Text
Enacted
Engrossed
Enrolled
Introduced
Reengrossed
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