Denver, CO – In a win for all Coloradans, Pharmacy Benefit Mangers (PBMs) that administer the prescription drug plans for the State of Colorado will now have to compete against each other to offer the lowest cost to provide drug benefits for public sector employees and retirees. House Bill 1237, which will create an open marketplace and ensure the state gets the best possible deal, passed both houses of the Colorado legislature with strong bipartisan support.
PBMs manage prescription drug benefits for public and private health plans, negotiating rebates with drug manufacturers, and establishing reimbursement rates paid to pharmacies for filling prescriptions. This bill creates a transparent, online reverse auction process that will encourage PBM competition and generate significant savings for Coloradans.
“This innovative process uses 21st century technology to ensure we’re getting the best deal possible on prescription drug formularies,” said bill sponsor and chair of the Joint Budget Committee Senator Dominick Moreno. “This will generate millions in savings for our state at a time when we need it most.”
“We are bringing a straightforward free-market approach to a complex issue,” said bill sponsor Rep. Janice Rich. “By signing this bill, Governor Polis can help make sure Colorado taxpayers are getting the savings promised by PBMs.”
“We’re working to bring a private sector solution to state government so we can save taxpayers money,” said bill sponsor Sen. Barbara Kirkmeyer. “With this bill we will make sure Coloradans get the best deal possible for prescription drugs.”
“This bill will allow us to continue providing the same benefits for our state employees while lowering costs for the state and taxpayers,” said Rep. Susan Lontine. “I’m thrilled for the support of my colleagues on both sides of the aisle and I’m proud to have sponsored this legislation that will rein in drug costs for our dedicated state workforce and for our taxpayers.”
The bill is now headed to Governor Polis’ desk for his signature.