Gov. Kelly Armstrong (R) signed into law H.B. 1584, pharmacy benefit manager licensure legislation with many provisions that NCPA considers best practices. While North Dakota already had some excellent protections for pharmacies against egregious PBM business practices, it did not have a complete licensure program and clear authorities for oversight and enforcement by the Department of Insurance.
The new law empowers the Department of Insurance and, at the same time, allows for common powers agreements with the Department of Health and Human Services and the Board of Pharmacy. Additionally, it authorizes the Board of Pharmacy to transfer funds to a PBM Enforcement Fund in the Department of Insurance, which will enable the hiring of three full-time employees to implement and enforce the law. The enforcement provisions are well constructed, with increasing administrative penalties and authorities granted to the Office of the Insurance Commissioner to make restitutions.
Also hugely important is that H.B. 1584 will apply to all PBMs serving nearly all plans in North Dakota because the state statute's reference to ERISA (Employee Retirement Income Security Act of 1974) was removed. The North Dakota Pharmacists Association (NDPhA) overcame strong resistance from a long list of powerful opponents, drawing insights from a range of sources such as 8th Circuit Court case law, an opinion letter from Texas Attorney General Ken Paxton (R), and the National Association of Insurance Commissioners.
H.B. 1584 continues North Dakota's legacy of strong policymaking that supports independent pharmacies. NCPA congratulates NDPhA for another major achievement!
