Rhode Island 2026 Regular Session

Rhode Island House Bill H7825

Introduced
2/26/26  

Caption

Requires the secretary of the executive office of health and human services to monitor and mandate changes to the price-setting practices of pharmacy benefit managers to prohibit the spread pricing payment model.

Impact

The proposed changes to the state's regulation of PBMs reflect a significant shift in the oversight mechanisms governing healthcare pricing strategies. By enforcing transparency in how drugs are priced and reimbursed, H7825 aims to foster a more equitable healthcare environment for Rhode Island residents who depend on Medicaid services. The bill authorizes the secretary of the executive office of health and human services to implement necessary changes to the state Medicaid program, ensuring that pharmaceutical costs are managed efficiently while maintaining service quality and accessibility.

Summary

House Bill 7825 aims to regulate the practices of pharmacy benefit managers (PBMs) in the state of Rhode Island, focusing particularly on eliminating 'spread pricing' which has been a controversial pricing strategy in healthcare. The bill mandates greater transparency and accountability among PBMs, requiring them to adhere to new pricing practices that ensure they do not charge health plans more for prescription drugs than they reimburse the pharmacies. This measure is propelled by the need to protect the state Medicaid program and its beneficiaries from escalating prescription drug costs, which have been a pressing issue for many residents.

Contention

The introduction of H7825 may encounter opposition from PBMs and possibly some healthcare providers who benefit from current pricing models. Critics of the bill may argue that increased regulation could lead to unintended consequences, such as reduced competition within the pharmaceutical market and potentially higher prices if PBMs are unable to negotiate favorable terms post-regulation. Proponents, conversely, assert that the bill is essential for consumer protection and for controlling rising healthcare expenses for taxpayers and Medicaid beneficiaries alike.

Companion Bills

No companion bills found.

Previously Filed As

RI S0173

Requires the secretary of the executive office of health and human services to monitor and mandate changes to the price-setting practices of pharmacy benefit managers to prohibit the spread pricing payment model.

RI H5498

Requires the secretary of the executive office of health and human services to monitor and mandate changes to the price-setting practices of pharmacy benefit managers to prohibit the spread pricing payment model.

RI S0165

Prohibits pharmacy benefit managers from conducting or participate in spread pricing within the state.

RI H6373

Requires the executive office of health and human services to increase Medicaid payment rates for primary care services furnished by primary care providers to be commensurate with Medicare rates.

RI H5463

Sets controls on Medicaid prescription drug costs by imposing transparency and accountability requirements on managed care organizations (MCOs) and their pharmacy benefit managers (PBMs).

RI S0117

Sets controls on Medicaid prescription drug costs by imposing transparency and accountability requirements on managed care organizations (MCOs) and their pharmacy benefit managers (PBMs).

RI H6308

Requires the executive office of health and human services to apply to the Centers for Medicare and Medicaid Services for a state plan amendment for reimbursement for health services in a school.

RI H5254

Requires pharmacy benefit managers to reimburse pharmacist no less than national drug acquisition costs plus fee.

RI S0222

Requires pharmacy benefit managers to reimburse pharmacist no less than national drug acquisition costs plus fee.

RI S1004

Requires the executive office of health and human services to apply to the Centers for Medicare and Medicaid Services for a state plan amendment for reimbursement for health services in a school.

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