SENATE BILL REPORT

SB 5596

BYSenators Nelson, West, Wojahn, Smith, Newhouse, Conner and Niemi

Allowing choice of pharmacies.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):February 23, 1989

Senate Staff:Kris Zabriskie (786-7439)

AS OF FEBRUARY 22, 1989

BACKGROUND:

Some health insurance policies include provisions which restrict the choice of pharmacies that a beneficiary may use to fill drug prescriptions.  Pharmacies not designated by the policy cannot receive reimbursement from the insurer for filling the prescription.  This cost must be borne by the beneficiary.

SUMMARY:

Third-party payors (insurers) may not restrict the choice of pharmacies that an insured patient may use to fill a prescription covered by the policy.  However, the insurer may limit the amount of reimbursement to what the designated pharmacy is entitled to receive.  Health maintenance organizations are exempt from this requirement.  A violation is declared to be a misdemeanor.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.