Effective January 1, 2017, all entities acting as a pharmacy benefit manager (PBM) in Washington state under RCW Chapter 19.340 (leg.wa.gov) must register with the Office of the Insurance Commissioner (OIC).
How to register
All PBM applicants must register through the OIC's online registration portal.
When you register, login instructions and credentials for filing information and making payments will be provided to your primary contact person. You may need to complete additional required information using our online filing and payment portal.
Completing your payment
After July 1, 2017, PBMs will be charged a $200 registration fee. You can pay through the filing and payment portal.
Once your registration is approved, you will be notified via an email to your primary contact person.
How to renew
After July 1, 2017, PBMs registered with the OIC will be required to renew their registration each year. The annual renewal fee payment is due no later than July 15 of each year.
The renewal fee is determined on the OIC cost for renewal and oversight activities for the July 1 – June 30 year based on a proportional share of the cost of the previous calendar year gross PBM income as reported to the OIC. The minimum fee is $500.
You can pay through the filing and payment portal. Once your renewal payment has been processed, you will be notified via an email to your primary contact person.
For information about the 2017 renewal fee, please proceed to this site.
PBM renewal fee calculation
The PBM renewal calculation is based on gross income as reported on your prior year annual report. The minimum amount due is always $500.00. The calculations below apply to the 2017 surcharge due July 15, 2017.
PBM renewal fee assessment
Each year, the PBM renewal fee is calculated based on the annual operating costs to administer the agency’s PBM renewal and oversight as determined by legislative appropriation. Any cash balance at the end of a fiscal year, less an appropriate cash reserve, is carried forward and used to reduce future assessments. Since this is our first year with PBM renewal fee assessment, there is no credit factor.
Renewal fee calculation
Renewal rate: .0770492% (restated)
Credit factor: 0%
Net Renewal Rate: .0770492% (restated)
Using the Washington State Gross PBM Income as Reported on the 2016 Annual Report, multiply that amount by the "Net Renewal" rate to determine the fee due. If the calculation is less than $500, we charge the minimum $500 fee.