Idaho enacts PBM law – Key takeaways for employers

Idaho is the latest state to try its hand at regulating pharmacy benefit managers with House Bill 596 (HB 596), signed into law by Governor Little on April 1, 2024. Similar to the Prescription Drug Reform Act recently passed in Florida, HB 596 governs disclosure, reporting, and contractual requirements for PBMs doing business in Idaho. HB 596 will have at least some impact on group health plans that provide prescription drug coverage to Idaho residents. It appears to take effect on January 1, 2025, without regard to a PBM’s contract term or the plan year of any affected group health plan.

This alert summarizes HB 596, with a focus on those provisions most likely to affect employer-sponsored health plans. It is relevant for employers offering prescription drug benefits to Idaho residents.