Stivers says PBM bill stuck in Senate over cost concerns

BY MELISSA PATRICK
KENTUCKY HEALTH NEWS

FRANKFORT — State Senate President Robert Stivers said he favors funding more research on medical marijuana before making it legal in Kentucky, but Gov. Andy Beshear says medical cannabis has overwhelming support in the state and should pass when the legislature returns to reconsider vetoed bills.

At separate press conferences in Frankfort Thursday, the two leaders also discussed the Republican legislature’s rejection of the Democratic governor’s plan to give Kentuckians who worked throughout the pandemic a “hero bonus;” and Stivers said a House bill to rein in pharmacy benefit managers died in the Senate for fear it would raise consumers’ and employers’ costs.

Medical marijuana: Stivers said the House-passed cannabis bill “would be difficult” to pass the Senate next week, but he supports a bill by Rep. Kim Moser, R-Taylor Mill, to create a cannabis research center at the University of Kentucky and expects it to pass. “I think it not only would be good locally but nationally and internationally to understand the medicinal and therapeutic values of marijuana,” he said.

Stivers acknowledged that studies show cannabis helps with certain medical conditions, “but every study I’ve read said the sample sizes have been too small, the duration is too long and therefore more study is needed.”

Moser’s House Bill 604 has had two of its three required readings, so it could clear the Senate Appropriations and Revenue Committee and the full Senate quickly on April 13 and/or 14.

Beshear urged the legislature to pass the medical-cannabis bill in those two remaining days, which would require suspension of the three-readings rule. “Its time has certainly come.”

He added, “Kentuckians deserve the passage of a medical-marijuana bill. They overwhelmingly support it. When 70-plus percent of a state is in favor of something, it’s time for the General Assembly to step up and do something about it. Represent the people.”

Asked later if he could do anything by executive order to make it easier for people with certain conditions to have access to medical cannabis, Beshear said, “We’re going to explore that. . . . I am for medical marijuana and I will continue to push it until we make it a reality.”

The House passed its cannabis bill, HB 136, by a vote of 59-35, with just over half of the Republicans who voted on the bill favoring it. A similar bill passed the House in 2020 but died in the Senate.

Pharmacy benefit managers: House Bill 457 would ensure that patients could pick their pharmacy instead of being required to use one affiliated with a pharmacy benefit manager; increase transparency between insurers and PBMs; and ban PBMs from retroactively denying a pharmacy claim after adjudication, commonly referred to as “clawing back.” It passed the House 88-3.

Asked why the bill didn’t gain any traction in the Senate after such overwhelming support in the House, Stivers said, “When it got here, we started getting, from business sector and provider sector, various questions and comments about what the overall cost would be to various plans.”

The bill was opposed by one of the session’s heaviest lobbying campaigns. The Pharmaceutical Care Management Association, the PBM trade group, spent $38,369 to get its message to lawmakers before March, when it ran television commercials urging voters to ask their legislators to defeat it.

Stivers said it had been assigned to the Appropriations and Revenue Committee “because it has potential fiscal impact — local, individual, personal and state fiscal impact.” He indicated that the bill would not pass since that would require suspension of the three-readings rule, and more education would be needed among Republican senators about what it would do.

Hero bonuses: Stivers said the General Assembly took a different approach to hero bonuses that he said would benefit everybody, mainly because it was too hard to determine just who would qualify for bonuses. He said the legislature is giving income-tax reductions and workforce incentives, and investing in infrastructure and higher education.