Colorado Delinking Bill Signed into Law

Gov. Jared Polis (D) signed HB 1094 into law over objections from the PBM industry and business community. The bill, which applies only to fully insured plans offered in Colorado, includes delinking, mandatory pharmacy reimbursement provisions, and additional auditing rights for payers.

Delinking is a concept being pushed by pharmaceutical manufacturers to prohibit a PBM’s compensation from being tied to a drug’s list price. Delinking would reduce the amount of money available to employers, unions, government entities, and health plans that they could otherwise use to lower premiums, reduce out-of-pocket costs, and offer more comprehensive benefits.

In addition to the delinking provision, HB 1094 requires PBMs to reimburse all pharmacies at NADAC plus a “reasonable and adequate dispensing fee” that will be determined by the Insurance Commissioner. The bill goes into effect Jan. 1, 2027.