As the 2025 regular session came to a close, the state Legislature approved House Bill 264 by state Rep. Michael Echols, delivering one of the strongest crackdowns on pharmacy benefit managers (PBMs) in the country.
HB 264, the PBM Reform Act, passed with broad bipartisan support and now heads to the Governor’s desk.
The bill ensures that prescription drug rebates and discounts flow directly to patients or their health plans—instead of being pocketed by middlemen. It also bans spread pricing and mandates fair payments to local pharmacies.
“HB 264 is a simple idea,” said Echols, R-Monroe. “If there’s a deal on your medicine, those savings should go to you—not some corporate company in the middle.”
The legislation includes sweeping new transparency requirements, bans abusive pricing practices and gives enforcement power to the Attorney General and Commissioner of Insurance, including the ability to pursue treble damages for violations.
HB 264 also creates a PBM Advisory Council to monitor the industry and advise state leaders on future reforms.
