An Act to Enhance Cost Savings to Consumers of Prescription Drugs
Maine Legislature, Session 131, LD 1165
Committee: Health Coverage, Insurance and Financial Services
Sponsors: CRAVEN, BALDACCI, FREDERICKS, GRAHAM, JAVNER, MEYER, PERRY, SHAGOURY, INGWERSEN, MOORE
Amends: 24-A MRSA §4350-A

Legislative Document
No. 1165
H.P. 737
House of Representatives, March 14, 2023
An Act to Enhance Cost Savings to Consumers of Prescription 
Drugs
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative CRAVEN of Lewiston.
Cosponsored by Senator BALDACCI of Penobscot and
Representatives: FREDERICKS of Sanford, GRAHAM of North Yarmouth, JAVNER of 
Chester, MEYER of Eliot, PERRY of Calais, SHAGOURY of Hallowell, Senators: 
INGWERSEN of York, MOORE of Washington.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §4350-A, as enacted by PL 2019, c. 469, §8 and affected by 
§9, is amended to read:
§4350-A.  Responsibility to use compensation for benefit of covered persons
1.  Compensation used to reduce point-of-sale costs, or improve benefits or lower 
premiums.  All compensation remitted by or on behalf of a pharmaceutical manufacturer, 
developer or labeler, directly or indirectly, to a carrier, or to a pharmacy benefits manager 
under contract with a carrier, related to its prescription drug benefits must be: remitted 
directly to the covered person at the point of sale to reduce the out-of-pocket costs to the 
covered person associated with a particular prescription drug.
A.  Remitted directly to the covered person at the point of sale to reduce the out-of-
pocket cost to the covered person associated with a particular prescription drug; or
B.  Remitted to, and retained by, the carrier.  Compensation remitted to the carrier must 
be applied by the carrier in its plan design and in future plan years to offset the premium 
for covered persons.
2.  Compliance.  Beginning March 1, 2021 and annually thereafter Annually by March 
1st, a carrier and pharmacy benefits manager shall file with the superintendent a report in 
the manner and form determined by the superintendent demonstrating how the carrier or 
pharmacy benefits manager has complied with this section.
3.  Enforcement.  The superintendent may impose civil penalties and enforcement 
actions pursuant to section 12-A on a carrier or pharmacy benefits manager that violates 
this section.
4.  Confidentiality.  Information provided to the superintendent pursuant to this section 
is confidential and may not be disclosed.
SUMMARY
This bill removes a provision that requires that compensation remitted by or on behalf 
of a pharmaceutical manufacturer, developer or labeler to a pharmacy benefits manager be 
remitted to the carrier if it is not remitted to the covered person. It retains the provision that 
requires that the compensation be remitted to the covered person to reduce the out-of-
pocket costs associated with a prescription drug.  It requires pharmacy benefits managers 
to annually report compliance with this requirement to the Superintendent of Insurance.  It 
authorizes the superintendent to impose civil penalties and take enforcement action for 
noncompliance by a carrier or pharmacy benefits manager.  It designates the information 
provided as confidential.