Texas HB970 mandates that prescription drug price reductions be fully reflected in the price paid by patients, with penalties for non-compliance.

Texas HB970 amends the Insurance Code to require pharmacy benefit managers to ensure that any price reductions on prescription drugs are fully passed on to patients. This applies to various health benefit plans and programs, including Medicaid and TRICARE. Non-compliance can result in a civil penalty of three times the unreflected price reduction plus an additional $5,000 per violation. The attorney general can seek injunctive relief and penalties on behalf of the state. The provisions take effect September 1, 2025, and apply to plans renewed or issued after January 1, 2026.

Texas HB970 mandates that prescription drug price reductions be fully reflected in the price paid by patients, with penalties for non-compliance.

Texas HB970 amends the Insurance Code to require pharmacy benefit managers to ensure that any price reductions on prescription drugs are fully passed on to patients. This applies to various health benefit plans and programs, including Medicaid and TRICARE. Non-compliance can result in a civil penalty of three times the unreflected price reduction plus an additional $5,000 per violation. The attorney general can seek injunctive relief and penalties on behalf of the state. The provisions take effect September 1, 2025, and apply to plans renewed or issued after January 1, 2026.