The House Industry, Business and Labor Committee convened on February 18, 2025, to discuss significant issues affecting pharmacists and their contracts with Pharmacy Benefit Managers (PBMs). The meeting, chaired by Mr. Wherry, focused on the rights of pharmacists regarding contract agreements and the influence of PBMs on the pharmaceutical market.

The discussion began with Representative Ruby questioning the implications of contract terms for pharmacists. It was clarified that pharmacists have a 30-day window to opt out of contracts and a 90-day notice period to cancel contracts if they find the terms unfavorable. This provision aims to protect pharmacists from being locked into agreements that may become disadvantageous over time, particularly when reimbursement rates from PBMs fall below their costs for medications.

Mike Schwab from the North Dakota Pharmacists Association added that contracts can change after they are signed, often leading to unfavorable pricing terms. This flexibility allows pharmacists to reassess their agreements and opt out if conditions worsen.

Representative Shower expressed support for the proposed measures, commending Representative Casper for his efforts in addressing the powerful influence of PBMs on the healthcare system. He emphasized the need for legislative action to ensure consumer protection and to signal that North Dakota is taking steps to manage its healthcare landscape effectively.

The committee acknowledged the potential for fear and uncertainty among stakeholders regarding the proposed changes, particularly concerning self-managed health plans. However, the overall sentiment was one of optimism that these measures could provide much-needed support for pharmacists and enhance consumer protection in the state.

The meeting concluded with a commitment to further evaluate the implications of these discussions and to consider the feedback from various stakeholders as the legislative process continues.