The Senate recently passed legislation that would impose a $10.64 tax on every prescription filled in the state, resulting in hundreds of millions of dollars in increased costs for businesses annually.
This bill is intended to support local pharmacists facing ongoing reimbursement challenges, a concern we fully acknowledge. We stand with pharmacies in their efforts to find solutions that address these issues effectively.
However, the proposed tax would place the entire financial burden on businesses, as they would bear 100% of the cost. Notably, the state’s public employee plans have been excluded from this tax.
This prescription tax is not the solution to the complex issues surrounding drug pricing and reimbursement. It unfairly shifts responsibility to businesses for a problem they did not create. In response, BCA has proposed fairer, more balanced solutions that would ensure local pharmacies are not financially disadvantaged, but those proposals have been rejected.
Rather than offering a temporary fix, a more effective approach would involve a comprehensive study to thoroughly understand the root causes of the issue. BCA remains committed to advocating for a fairer, more sustainable solution for all stakeholders.
The House has passed a bipartisan tax cut package, which includes a reduction in the state sales tax on groceries. This four-bill package will provide an annual savings of $192 million for Alabama residents.
The legislature will observe a break next week and return on Tuesday, April 1.
House Minority Leader Anthony Daniels sat down with BCA this week to discuss his leadership style within the Democratic Caucus and some key issues they are focusing on this session.
Senate Majority Leader Steve Livingston will join us on April 1st at our next briefing. We hope to see you there!
Bill: SB22
Sponsor: Sen. Merika Coleman
BCA Position: Monitor
Status: Passed Senate; pending action in House Ways and Means Education Committee
Additional Information: This bill further provides for the recapture of incentives for a company who is found guilty of human trafficking.
Bill: SB84
Sponsor: Sen. Arthur Orr
BCA Position: Monitor
Status: Pending action in Senate Banking and Insurance Committee
Additional Information: This bill would allow a nonprofit agricultural organization to provide health benefits to its members and their families. Under current law, all health plans are regulated under the Department of Insurance. This legislation would exempt this plan from all insurance laws and regulations without any oversight. The proposed bill explicitly authorizes a nonprofit agricultural organization to provide such benefits while maintaining that they are not in the business of health insurance.
Bill: SB252
Sponsor: Sen. Billy Beasley
BCA Position: Opposed as introduced*
Status: Passed Senate
Additional Information: This bill would impose a $10.64 dispensing fee on all prescriptions filled in Alabama.
Bill: SB187/HB317
Sponsor: Sen. Clyde Chambliss/Rep. Chris Sells
BCA Position: Monitor
Status: Amended and reported out of Senate Children and Youth Health Committee/pending action in House Children and Senior Advocacy Committee
Additional Information: This bill would require app store providers to verify user ages, link minor accounts to parent accounts with consent, and notify users of significant app changes. It would mandate protection of age verification data and prevent enforcing contracts with minors or sharing personal data. Developers would be required to verify ages, notify users of app changes, and comply with age data regulations. The Attorney General would adopt rules and could take action for violations as deceptive trade practices.
Bill: HB283
Sponsor: Rep. Mike Shaw
BCA Position: Monitor
Status: Pending action is House Commerce and Small Business Committee
Additional Information: This bill would allow consumers to confirm, correct, delete, or obtain a copy of their personal data and opt out of its processing. It would require controllers to provide a secure method for consumers to exercise their rights and establish an appeals process. Consumers could designate an authorized agent to act on their behalf. The bill would also regulate how controllers process personal and deidentified data.
Bill: HB291
Sponsor: Rep. Neil Rafferty
BCA Position: Opposed
Status: Pending action in House Committee on Commerce and Small Business
Additional Information: This bill would repeal the Alabama Uniform Minimum Wage and Right-to-Work Act.
Bill: SB228/HB418
Sponsor: Sen. Andrew Jones/Rep. Jamie Kiel
BCA Position: Opposed
Status: Pending action in Senate Banking and Insurance Committee; pending action in House Financial Services Committee
Additional Information: This bill would create a new private right of action that individuals and corporations can use to claim discrimination on a wide variety of subjective ideological grounds. The bill represents a significant government encroachment into how certain financial institutions, insurers, credit card companies, and payment processors assess risk and make business decisions, determinations that are already subject to numerous federal laws and regulations. Importantly, even if the Alabama Banking Department or Alabama Insurance Department investigates a discrimination complaint and finds no violation, this bill still would give a complainant the ability to seek and recover treble damages, attorneys’ fees, and injunctive relief in civil court.
* BCA has concerns with these bills as introduced, as they would lead to increased costs for employers and their employees.
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