101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3117

 

Introduced 2/6/2020, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/513b7 new

    Amends the Illinois Insurance Code. Provides that a pharmacy benefit manager has a fiduciary duty to a third party with which the pharmacy benefit manager has entered into a contract to manage the pharmacy benefit plan of the third party and shall notify the third party in writing of an activity, policy, or practice of the pharmacy benefit manager that presents a conflict of interest that interferes with the ability of the pharmacy benefit manager to discharge its fiduciary duty. Allows the Director of Insurance to refuse to issue, suspend, or revoke a license or impose a fine if it is found that a pharmacy benefit manager has failed to adequately discharge its fiduciary duty to a third party. Effective immediately.


LRB101 18312 BMS 67758 b

 

 

A BILL FOR

 

SB3117LRB101 18312 BMS 67758 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by adding
5Section 513b7 as follows:
 
6    (215 ILCS 5/513b7 new)
7    Sec. 513b7. Pharmacy benefit manager fiduciary duty. A
8pharmacy benefit manager has a fiduciary duty to a third party
9with which the pharmacy benefit manager has entered into a
10contract to manage the pharmacy benefit plan of the third party
11and shall notify the third party in writing of an activity,
12policy, or practice of the pharmacy benefit manager that
13presents a conflict of interest that interferes with the
14ability of the pharmacy benefit manager to discharge that
15fiduciary duty. The Director may refuse to issue, suspend, or
16revoke a license or impose a fine pursuant to Section 513b4 if
17it is found that the pharmacy benefit manager has failed to
18adequately discharge the fiduciary duty imposed upon it by this
19Section.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.