In Major Milestone for PBM Reform, CO Legislature Passes Bipartisan HB 1094 to Increase PBM Accountability and Reduce Drug Costs

HB 1094 Ensures PBMs are Working to Lower Prescription Drug Costs

Today, the Colorado legislature passed bipartisan House Bill 1094 to help reduce the costs of prescription drugs for Coloradans by holding pharmacy benefit managers (PBMs) accountable. After passing the Senate this week and passing a concurrence vote in the House today, HB 1094 now heads to Governor Polis’ desk for his signature. 

The legislature’s passage of HB 1094 marks a major step toward meaningful PBM reform and lower prescription drug costs for Colorado families. HB 1094 is supported by a diverse coalition of organizations representing doctors, patients, small businesses, and pharmacists from across the state.

In their role as middlemen in the prescription drug system, PBMs are meant to negotiate lower prescription medication costs on behalf of health insurers, large employers, and ultimately Colorado patients. However, PBMs are taking advantage of the prescription drug system and increasing out-of-pocket costs in order to secure larger profits. House Bill 1094 is a common-sense solution to prevent PBMs from generating revenue through high prescription prices, prevent them from restricting patient access to more affordable treatments, and ensure they pass on savings to patients as intended. 

Recent polling shows that 70% of Colorado residents experienced at least one healthcare affordability crisis in the past year, 83% worried about affording healthcare in the future, and 68% of all respondents had delayed or gone without healthcare due to cost. 

“Health care costs are rising for my constituents, and we need to tackle this problem from all angles,” said Representative Dusty Johnson. “HB 1094 prevents PBMs from profiting off complex pricing, ensures fair pharmacy reimbursements, and makes certain that savings from negotiations are passed on directly to Coloradans. I want to thank my colleagues in the legislature for supporting this important legislation to make our health care system work better for our constituents.”

“Thank you to my colleagues for advancing this critical legislation. We need to make certain that our health care system allows all Coloradans to access the critical medications they rely on, and that means holding PBMs accountable,” said Representative Kyle Brown. “Prescription drug costs have continued to increase, forcing too many families to make difficult decisions about what they can afford. This bipartisan bill will help rein in these costs and ensure that PBM savings are passed on to consumers.”

“The cost of prescription medications remains a significant burden for many Coloradans,” said Senator Dylan Roberts. “With HB 1094, we’re delivering a meaningful policy solution for our constituents and taking an important step toward a more transparent and accountable prescription drug system. By reining in PBMs and ensuring they’re working to lower costs, not inflate them, we’re making Colorado’s health care system more affordable and accessible. I’m grateful to my colleagues for helping us move this important legislation across the finish line.” 

“HB 1094 is a common-sense solution that restores PBMs to their intended role: negotiating better prices for patients and returning value to the people who need it most,” said Senator Byron Pelton. “This bill will help lower medication costs, reward PBMs that use their bargaining power to hold pharmaceutical companies accountable, and ensure our local pharmacies are reimbursed fairly so they can continue serving their communities. I thank my fellow lawmakers for their valuable support in passing this important reform for Colorado families.”

“Coloradans living with chronic health conditions work every day to lead healthy, fulfilling lives—but for too many, the high cost of prescription medications remains a barrier,” said Sara Froelich, Executive Director of the Chronic Care Collaborative. “With the passage of HB 1094, lawmakers have taken a major step toward a more transparent and accountable health care system—one that puts patients first. We’re thrilled to see broad support for this common-sense reform and grateful to legislators for standing up for the health and well-being of our communities.”

Learn more about PBMs and meaningful policy reforms to lower costs at pbmaccountabilityco.org.