The Mississippi Senate’s Public Health Committee adopted a strike-all amendment this week to the House’s Pharmacy Benefit Manager (PBM) reform bill, removing a prohibition on PBM steering practices. State Senator Rita Parks (R) said the change keeps PBM regulation under the Department of Pharmacy, addressing concerns about shifting oversight to the Insurance Commissioner, which she said lacked funding.
Parks told the Magnolia Tribune that her amendment also removed language banning PBMs from steering patients to affiliate pharmacies. Instead, the bill establishes a new payment methodology for independent pharmacies, based on a net amount equal to reimbursements paid by Medicaid and PBM affiliates. Parks said this approach replaces rebates and preserves the regulatory authority of the Board of Pharmacy.
Despite the removal of the steering ban, Parks emphasized that her amendment does not eliminate affiliate pharmacies and aims to support independent pharmacies, which have been declining in Mississippi. She noted that 55 pharmacies have closed since 2021, citing their importance to rural communities.
However, State Senator Jeremy England (R) expressed concern that the amendment does not address steering practices. He warned that passing the strike-all could result in the same issues faced last year. Parks defended her proposal, stating it uses the National Average Drug Acquisition Cost and aligns with similar measures adopted in neighboring states, which she said help control costs and eliminate middlemen profits.
The Senate will now consider the amended bill. If approved, it will return to the House for further action. The original House bill passed the chamber 79-38 in early February. Supporters hope the revisions will bolster independent pharmacies and maintain PBM oversight with the Board of Pharmacy, as in previous years.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
