BATON ROUGE, LA – Louisiana patients, families, employers, taxpayers, and healthcare providers scored a major victory today as Senate Bill 387 was signed into law, delivering one of the strongest Pharmacy Benefit Manager (PBM) reforms in the nation.
Championed by Representative Chris Turner and Senator Adam Bass and strongly supported by Governor Jeff Landry and President Cameron Henry, the legislation fundamentally changes how PBMs operate in Louisiana by targeting hidden fees and misaligned incentives that have driven up prescription drug costs for years.
“For too long, PBM middlemen got richer while Louisiana families paid more for their medicine,” said Millard Mulé, spokesperson for Louisianans for PBM Accountability. “SB 387 changes those incentives, puts patients first, and has real potential to lower drug costs for Louisiana families.”
Support for reform came from an extraordinarily broad coalition of Louisiana stakeholders, including the Louisiana Family Forum, Ellevate Louisiana, Rheumatology Alliance of Louisiana, Coalition of State Rheumatology Organizations, Alliance for Transparent and Affordable Prescriptions, National Infusion Center Association, physicians, pharmacists, employers, faith leaders, patient advocates, retailers, and community leaders across the state.
The coalition thanked Governor Jeff Landry, Representative Chris Turner, and Senator Adam Bass for their leadership in advancing the legislation.
“Governor Landry made PBM accountability a priority, while Representative Turner and Senator Bass worked tirelessly to build bipartisan support for reforms that put Louisiana patients ahead of corporate middlemen,” explained Mulé.
Representative Chris Turner added: “Louisianans should not pay a penny more than necessary for their medicines. This law not only shines a light on a system that has operated in the shadows, but it also put patients ahead of PBM profits.”
Julie Stokes, a former legislator, a cancer survivor, and the founder of Ellevate Louisiana, emphasized: “Anyone who has battled a serious illness knows how devastating prescription costs can be. This legislation attacks the incentives driving costs higher and builds a more transparent, patient-centered system.”
Aaron Broadwell, MD, President of the Coalition of State Rheumatology Organizations, stated: “Louisiana has taken a bold step toward changing the equation so patients are no longer at the mercy of powerful corporations. Other states should follow Louisiana’s lead.”
Gene Mills, President of the Louisiana Family Forum, said: “This reform protects our elderly, our sick, and our working families by restoring fairness and accountability.”
Key reforms in SB 387 include:
- Prohibiting spread pricing and hidden drug price markups that allow PBMs to profit at the expense of patients and pharmacies.
- Requiring transparent service-fee-only compensation models instead of price-based profits or retained rebates.
- Mandating that PBMs act as fiduciaries, serving the best interests of health plans, enrollees, and providers.
- Requiring full pass-through of manufacturer rebates and price concessions to plans and patients.
- Expanding transparency and accountability requirements for all PBMs operating in Louisiana.
- Improving state contracting through competitive procurement processes.
Coalition leaders called SB 387 an historic starting point.
“SB 387 is a strong beginning, not the finish line,” concluded Mulé. “We will continue working to ensure that these reforms are enforced and that Louisiana patients – not PBMs – decide where they get their prescriptions filled.”
Louisianans for PBM Accountability is a Louisiana-first, nonpartisan coalition of patient advocates, healthcare professionals, pharmacists, employers, faith leaders, and community organizations working to ensure Louisiana families pay fair prices for prescription medicines.