RELEASE: Winter Bill to End Retroactive Fees on Pharmacies Heads to Governor

DENVER, CO - A bipartisan bill aiming to lower prescription drug costs and support rural pharmacies, passed the Senate today. HB20-1078, sponsored by Senator Faith Winter, creates requirements for the rates paid by pharmacy benefit managers (PBM) to pharmacies.

"Coloradans are struggling to access affordable prescription drugs,” said Senator Faith Winter (D-Westminster). “Our small and rural pharmacies need to be able to serve their communities and provide essential medications without going bankrupt as well. This bill serves as a strong step towards ensuring prescription drug costs are lowered for Coloradans everywhere.

In the last 15 years, 16% of independently-owned rural pharmacies have closed, and hundreds of rural communities went from having one or more to having none. Retroactive billing negatively impacts rural pharmacies, who have less financial capacity to absorb losses on drug costs and have to raise prices — ultimately forcing consumers to bear the burden of these crippling costs.

HB20-1078 requires that all middle management companies, known as PBMs, reimburse for clean claims and reasonable dispensing fees. The bill would prohibit all PBMs from allowing retroactive fees, including for performance or value-based contracts, which increase the cost of prescription drugs for Coloradans and pharmacies. Finally, this bill would allow for any ‘unclean claims’ to be audited and recovered. 

Similar legislation has been passed in 18 other states so far.

Through HB20-1078, Colorado has the opportunity to ensure that rural pharmacies are able to sustainably provide prescriptions for the medications that Coloradans need the most. 

HB20-1078 now moves to the Governor's desk for final approval. For more information about this bill, please click here.