Pharmacy benefit management companies.

03LSO-0502.L1

FISCAL NOTE (HB0208)

The fiscal impact is indeterminable due to an unknown number of cases. The Board of Pharmacy reports that it currently does not have expertise in this area. The Board anticipates that an increase in staff may be needed to carry out this legislation. The Insurance Department does not have information necessary to estimate the increase in revenue from the bill, because the number of pharmacy benefit management companies that would operate in Wyoming under this legislation is unknown. The legislation provides for a $500 application fee for a license to be issued by the Department of Insurance to pharmacy benefit management companies and the companies must annually renew the license, but no renewal fee is provided. The Department notes that the legislation requires pharmacy benefit management companies to pay the cost of their examinations and that they are to be assessed for the expenses of regulation in proportion to the business done in Wyoming. Because the Department has not regulated these entities in the past, the cost of an examination of one of these companies is unknown. Depending on the number of companies that apply, and because the Department currently has no staff with expertise with these types of companies, it is possible that a new position would be necessary to administer the provisions of this bill.

Prepared by: Wendy Madsen, LSO Phone: 777-7881

(Information provided by James Carder, Board of Pharmacy, 234-0294; Ken Vines, Department of Insurance, 777-6894)