Louisiana
Inside the battle over prescription drug prices and pharmacies in the Louisiana Legislature
Independent pharmacies gained the upper hand Wednesday against pharmacy benefit managers following a behind-the-scenes lobbying battle over what has been one of the biggest unsettled policy issues in the final days of the regular legislative session.
The outcome could affect everyone in Louisiana who buys prescription drugs, especially those who purchase specialty drugs that treat such maladies as diabetes, neuropathy and inattention or hyperactivity.
Pharmacy benefit managers are third-party companies that are supposed to negotiate lower drug prices by acting as middlemen between drug manufacturers, insurance companies and pharmacies. Critics say that pharmacy benefit managers pocket too much of the savings.
A measure passed Wednesday by the Senate Insurance Committee, House Bill 264, favored independent pharmacies by prohibiting pharmacy benefit managers from steering customers to pharmacies they own and by mandating that discounts negotiated by pharmacy benefit managers go to employers and consumers. HB264 also requires pharmacy benefit managers to report more details of their activities to government regulators to ensure that they are following the law.
“Today the balance has shifted away from large corporations and their profits back to independent pharmacies and the consumers,” Sen. Adam Bass, R-Bossier City, said in an interview following the insurance committee hearing.
Gov. Jeff Landry has sided with the independent pharmacies, saying when he opened the legislative session nearly two months ago that he favors “reining in the PBMs who are driving the cost of prescriptions.” Landry pitched his views to Republican senators Monday night in the Senate basement, according to senators.
Lobbyists for pharmacy benefit managers had lobbied against HB264 but accepted the changes as inevitable, legislative sources said, to try to head off Louisiana from following Arkansas and adopting more far-reaching legislation that would prohibit pharmacy benefit managers from also owning and operating pharmacies.
Landry also supports that change, according to his staff.
CVS, the biggest drug store company that owns a pharmacy benefit manager, sued Arkansas a week ago to block the new law there from taking effect. CVS has 23 pharmacies in Arkansas but more than 100 in Louisiana.
The CEO of Caremark, CVS’ pharmacy benefit manager, tried to sway legislators in Louisiana with phone calls, legislators said. The CEO of Optum Rx, another pharmacy benefit manager, came to Baton Rouge to personally lobby lawmakers.
A state website shows that CVS has seven lobbyists working the halls of the State Capitol. They are working in alliance with lobbyists for the Pharmaceutical Care Management Association.
“PBMs secure savings on prescription drugs for Louisiana employers and patients and provide employers with a wide range of choices to offer quality prescription drug coverage,” said Greg Lopes, a spokesperson for the association. “Drug companies set drug prices, and the prices are the problem.”
CVS declined to comment, saying the company is still digesting the last-minute changes to HB264.
The Louisiana Association of Independent Pharmacies and their allies have their own phalanx of lobbyists.
“PBMs shouldn’t be allowed to say one thing and do another behind the scenes,” said Randal Johnson, president of the Louisiana Independent Pharmacies Association. “HB264 attempts to shine a light on rebate flows, bans hidden fees and ensures that what’s paid and what’s reimbursed can actually be traced and reviewed. That’s good policy, and more importantly, it’s pro-patient.”
The heavy lobbying by both sides caught the attention of legislators.
“Every lobbyist here is hired,” said Rep. Dustin Miller, D-Opelousas. “You have CEOs from these companies flying in. There are meetings happening in every room of this building.”
Pharmacy benefit managers have become in vogue only in the past dozen years but have quickly faced questions for their activities.
The New York Times reported in a three-part series last year that pharmacy benefit managers operate in an opaque fashion and “are driving up drug costs for millions of people, employers and the government.”
The Trump administration and Congress are moving to adopt less favorable rules for pharmacy benefit managers.
Wednesday’s action is not the final word in the long-running battle in Louisiana between the independent pharmacies and their allies on one side and the pharmacy benefit managers on the other.
The full Senate still needs to approve House Bill 264, and the House would need to agree to the changes made by the Senate before adjournment on June 12.
In the meantime, a separate House measure, House Bill 358 by Miller, could be amended to institute the change that CVS strongly opposes – a prohibition on pharmacy benefit managers from owning or operating pharmacies. House and Senate negotiators are scheduled to meet in the next several days to decide on the final shape of HB358.
“I support any legislation that will stop the anti-competitive practices that I think PBMs do,” Miller said in an interview.
Rep. Mike Echols, R-Monroe, and the sponsor of HB264, also takes a skeptical view of the pharmacy benefit managers.
“We’re putting money into the hands of consumers, which should lower costs,” he told the Senate Insurance Committee.
Driving HB264 forward has been Bass, a 44-year-old Allstate agent who is the vice chair of the insurance committee. Sen. Kirk Talbot, R-Harahan, the committee chair, deputized Bass to try to fashion a bill that could win legislative approval.
Bass said he concluded that pharmacy benefit managers were using their power to block some drugs from coming to market and that employers and consumers are not receiving enough of the discounts negotiated by pharmacy benefit managers with drug manufacturers.
Bass said he met with lobbyists from all sides and worked until midnight with legislative staff late on Monday and Tuesday night to confect the final language for changes in HB264.
The amendments were not shared with lobbyists and some lawmakers until just before Wednesday’s meeting. Echols was quickly familiarizing himself with the changes to his bill just before he presented it Wednesday.
Once the hearing began, Bass explained the changes. A half hour later, the committee approved the amended bill without objection.
The lobbyists on both sides of the issue got up to depart, leaving behind a nearly empty room as the Senate committee moved onto less controversial measures.
Louisiana
DOJ ends another desegregation consent decree in Louisiana
Donald Trump is leading the most openly pro-segregation administration in recent American history, and it advanced that agenda this week when it killed yet another school desegregation agreement with a Louisiana parish.
The Associated Press reported Thursday that the Trump administration got a George W. Bush-appointed judge to lift another decades-old anti-segregation consent decree in the Bayou State.
Per the AP:
A federal judge on Monday approved a joint motion from Louisiana and the U.S. Justice Department to dismiss a 1967 lawsuit in DeSoto Parish schools, a district of about 5,000 students in the state’s northwest. It’s the second such dismissal since the Justice Department began working to overturn desegregation cases it once championed. Louisiana Attorney General Liz Murrill thanked President Donald Trump and Attorney General Pam Bondi on Wednesday for ‘helping us to finally end some of these cases.’
The AP quoted Murrill saying, “DeSoto Parish has its school system back,” and that “for the last 10 years, there have been no disputes among the parties, yet the consent decree remained.”
Of course, the absence of disputes under a consent decree is not exactly proof that the consent decree is no longer needed. To borrow an analogy from the late Justice Ruth Bader Ginsburg in her dissent from Shelby County, to throw out a consent decree because there’s been no resegregation or discrimination “is like throwing away your umbrella in a rainstorm because you are not getting wet.”
This follows the administration in February removing language that banned federal contractors from operating segregated facilities, and its decision last spring to quash a different consent decree with Louisiana’s Plaquemines Parish.
Louisiana
Louisiana task force confronts future of Greek life, pushes new hazing safeguards
BATON ROUGE, La (Louisiana First) — The final meeting for the Caleb Wilson Hazing Prevention Task Force took place Thursday.
The committee, organized by the Louisiana Board of Regents, brought together lawmakers, university leaders, student advisors, and hazing prevention stakeholders to make sure no Louisiana family loses another student to hazing.
State representative Vanessa LaFleur, a leading voice on this task force, said, “We don’t want there to ever be another Max [Gruver], or another Caleb in the state of Louisiana.”
Her statement referenced two high-profile hazing deaths that reshaped the conversation around student organizations in the state. Members echoed the sentiment that this isn’t just an isolated issue; it’s a culture issue.
“There are things that shift culture, things that create culture,” said Winton Anderson. “And what we were doing today was not only dealing with the prevention piece as much as dealing with the accountability piece.”
Task force leaders said Thursday’s meeting was about closing gaps in oversight, enforcement, and advisor responsibility for all Louisiana schools.
“Today, what you saw is closing the gap of our attempt to close the gap on what we believe are going to be the next phase of policies to help us ensure that there’s accountability at every level,” said Anderson.
The policy reform is key, but leaders said education is the foundation.
“The key to this is education,” said LaFleur. “And I think we’ve put in the safeguards for that. Safeguards will be there when the legislation drops. We’ve got to show them why hazing does not create sisterhood, why hazing does not create. But what it does is it destroys.”
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Louisiana
Louisiana races to hire AI workers as majority of pilot projects fail
Demand for more Midwest data centers skyrockets
What are data centers and why are they needed?
Nearly all corporate artificial intelligence pilot projects fail to deliver measurable business value, according to new research — a finding that comes as Louisiana companies accelerate AI hiring faster than the data workforce needed to support it.
A national analysis by data consultancy DoubleTrack found that 95% of generative AI pilot projects fail to produce measurable profits, a rate that researchers attribute largely to weak data infrastructure rather than shortcomings in AI technology itself.
Despite that failure rate, Louisiana employers are hiring AI specialists far faster than data infrastructure workers. The study found Louisiana companies posted 151% more AI and machine-learning jobs than data infrastructure roles, ranking the state among the most imbalanced AI labor markets in the country.
According to the analysis, Louisiana employers advertised 548 AI-related positions compared with 218 data infrastructure jobs, meaning companies are hiring more than two AI specialists for every data engineer or platform specialist; the reverse of what experts recommend.
According to the study, industry consensus suggests that organizations should hire at least two data infrastructure professionals for every AI specialist to ensure that data is reliable, integrated, and usable. Without that foundation, AI systems often stall or are abandoned.
The consequences are already visible nationwide. Research cited in the report shows 42% of companies scrapped most of their AI initiatives in 2025, more than double the abandonment rate from the year before.
The findings carry particular significance for Louisiana as the state courts data centers, advanced manufacturing and digital infrastructure projects, including large-scale developments proposed in Caddo and Bossier parishes. While such projects promise billions in capital investment, they depend on robust data pipelines, power reliability and utility coordination — areas that require deep data infrastructure expertise.
Data centers, in particular, employ relatively few permanent workers but rely heavily on specialized data engineers to manage system redundancy, cybersecurity, data flow and integration with cloud and AI platforms. A shortage of those workers could limit the long-term impact of the projects Louisiana is working to attract.
The report also raises questions for workforce development and higher education. Louisiana universities have expanded AI-related coursework in recent years, but researchers say data engineering, database management and system integration skills are just as critical — and often in shorter supply.
Only 6% of enterprise AI leaders nationwide believe their data systems are ready to support AI projects, and 71% of AI teams spend more than a quarter of their time on basic data preparation and system integration rather than advanced analytics or model development, according to research cited in the study.
Those infrastructure gaps can have ripple effects beyond technology firms. Utilities, energy producers, health systems and logistics companies — all major pillars of Louisiana’s economy — increasingly rely on AI tools that require clean, connected data to function reliably.
DoubleTrack recommends companies adopt a 2-to-1 hiring ratio, with two data infrastructure hires for every AI specialist, to reduce failure rates.
“The businesses most at risk aren’t the ones moving slowly on AI,” said Andy Boettcher, the firm’s chief innovation officer. “They’re the ones who hired aggressively for AI roles without investing in data quality and infrastructure.”
As Louisiana pushes to position itself as a hub for data-driven industries, researchers say closing the gap between AI ambition and data readiness may determine whether those investments succeed — or quietly join the 95% that do not.
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