The Ohio House on Oct. 8 unanimously approved substitute House Bill 229, legislation that sets up a standalone licensing process for pharmacy benefit managers and requires expanded transparency about PBM contracts and financial flows.

Representative Dieter, sponsor of the substitute, told the House PBMs have been “largely hidden from view” and that the bill aims to give plan sponsors, employers, and pharmacies information needed to hold PBMs accountable. "This legislation establishes a stand alone PBM licensing process under the Department of Insurance," Dieter said, and highlighted provisions that require PBMs to disclose contractual arrangements, rebates, fees and other financial flows to plan sponsors and permit audits by the superintendent of insurance.

Representative Brent, the ranking member who engaged in floor discussion, said the proposal follows trends in other states and that increased transparency would help local pharmacies and employers. “These are great conversation pieces of how we can make sure there's more transparency and communication going on within the state of Ohio,” Brent said.

On the floor the bill received bipartisan support and passed 96–0, the clerk announced. The House agreed to the bill’s title and transmitted the measure to the Senate.

The floor record shows the bill does not itself set drug prices or dispensing fees, but backers said licensing, audits and required disclosures would create tools to address unfair or anticompetitive PBM practices. The bill text and implementing rules will determine specific reporting formats and enforcement timelines.