Mandatory Registration of Pharmacy Benefit Managers

STATE OF HAW AI`I INSURANCE DIVISION DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS P. O. BOX 3614 HONOLULU, HAWAI`I 96811-3614 335 MERCHANT STREET, ROOM 213 HONOLULU, HAWAI`I 96813 PHONE NO: (808) 586-2790 FAX NO: (808) 586-2806 cca.hawaii.gov/ins DAVID Y. IGE GOVERNOR SHAN S. TSUTSUI LT. GOVERNOR CATHERINE P. AWAKUNI COLόN DIRECTOR GORDON I. ITO INSURANCE COMMISSIONER MEMORANDUM 2017-7LIC Date: June 23, 2017 To: All Health Insurance Companies, Mutual Benefit Societies, and Health Maintenance Organizations and Pharmacy Benefit Managers in Hawai'i From: Gordon I. Ito, Insurance Commissioner Subject: Mandatory Registration of Pharmacy Benefit Managers To ensure adequate consumer protection and preserve transparency among business entities operating in the State of Hawai'i, Governor David Y. Ige signed into law Act 044 on June 22, 2017, which requires pharmacy benefit managers (“PBMs”) to register with the Insurance Commissioner. Act 044 takes effect on July 1, 2017. A PBM is any person that performs pharmacy benefit management, including but not limited to a person or entity in a contractual or employment relationship with a pharmacy benefit manager to perform pharmacy benefit management for a covered entity. Under the Act, PBMs providing services in Hawai'i must complete and submit the Pharmacy Benefit Manager Registration application/renewal form (found at http://cca.hawaii.gov/ins/producers/forms/) along with a $140 application fee by September 1, 2017. Each PBM shall renew its registration on the application/renewal form by March 31 of the following year along with a $140 renewal registration fee r the Act, PBMs providing services in Hawai'i must complete and submit the Pharmacy Benefit Manager Registration application/renewal form (found at http://cca.hawaii.gov/ins/producers/forms/) along with a $140 application fee by September 1, 2017. Each PBM shall renew its registration on the application/renewal form by March 31 of the following year along with a $140 renewal registration fee. The registration application requires the name, address, official position, and professional qualifications of each individual who is responsible for the conduct of the affairs of the pharmacy benefit manager, including all members of the board of directors; board of trustees; executive commission; other governing board or committee; principal officers, as applicable; partners or members, as applicable; and any other person who exercises control or influence over the affairs of the pharmacy benefit manager. The application also requires the name and address of the applicant's agent for service of process in the State. The completed application/renewal form along with the application fee may be mailed to Attn: Licensing Branch, Insurance Division, Department of Commerce & Consumer Affairs, 335 Merchant Street, Room 213, Honolulu, HI 96813. Incomplete forms or forms submitted without the application fee will not be processed. If you have any questions, please e-mail ihealth@dcca.hawaii.gov.