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.
Senate President Keith Faber (R–Celina) and State Senator Cliff Hite (R–Findlay) today toured Cooper Farms, operated by Gary Cooper and his son Cole. The elder Cooper currently serves as the Chairman of the National Turkey Federation, a role that wins him the honor of raising the 2014 National Thanksgiving Turkey that will be presented to President Barack Obama for a Presidential Pardon.
Senator Peggy Lehner today announced nearly 96 percent of third grade students from the 2013-2014 school year passed the new state standards implemented by Ohio’s Third Grade Reading Guarantee. These results reflect the scores earned by third graders following the summer administration of the O.A.A. exam.