The Ohio Senate today passed Senate Bill 258, sponsored by Senator Troy Balderson (R–Zanesville), which establishes standards for the oversight of pharmacy audits in Ohio.
“My main objective in the Statehouse has been to create an environment in Ohio where businesses can grow and thrive so we can help our friends and neighbors get back to work,” said Balderson. “When our local pharmacies came and showed me the costly and burdensome process they have to undergo during audits, I knew we needed to do something to help these family-owned businesses.”
Ohio pharmacies are routinely audited by health plans and insurance companies to check for accuracy and to make certain there has been no fraud, waste, abuse, or clerical errors that may cause accidental overpayments. However, these audits frequently occur with little or no notice to the pharmacy and can be overly burdensome for local, independently owned pharmacies.
“This bill provides fair and uniform oversight for pharmacy audits and ensures this process pinpoints and weeds out actual fraud instead of simply creating unnecessary loopholes without improving the system for Ohioans or our local businesses,” added Balderson.
On average, the cost of per audit to a pharmacy is $2,500 and some Ohio pharmacies indicated that they face 6 of these audits each year.
Senate Bill 258 would make Pharmacy Benefit Managers (PBMs) subject to reasonable audit standards by placing guidelines on when and how audits are conducted. These new standards include:
29 other states have already enacted audit reform measures similar to those in Senate Bill 258. The legislation now proceeds to the Ohio House of Representatives for further consideration.
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"I'm grateful for the investment Edison State is making in Darke County," said Faber. "Because of their vision and leadership, educational opportunities are being created that mirror the economic needs of our community. I'm particularly excited about the launch of their new agribusiness program. It's a testament to the partnership between our local schools, businesses and government to equip Ohioans with the tools they need to be successful."
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Last month we took another step forward in this battle with the passage of Senate Bill 332. This legislation reflects the important work of Ohio’s Commission on Infant Mortality, chaired by my Senate colleague Shannon Jones, which was tasked with taking inventory of the state’s response to infant mortality and making recommendations for future steps our state can take. The Commission identified several critical needs: that Ohio improve the collection and sharing of data as it relates to infant deaths, make reforms in how we deliver health care services, and perhaps most importantly, investigate the social determinants of health or why some mothers and babies are more at risk than others.