Create new sections of KRS Chapter 217 to define terms; require the Cabinet for Health and Family Services to annually compile a list of certain prescription drugs deemed to be essential to treating diabetes and a list of such drugs that have been subject to a price increase greater than a certain percentage; require drug manufacturers to annually report to the cabinet certain information related to the cost of manufacturing and marketing such drugs and factors that contributed to a price increase; require pharmacy benefit managers to annually report to the cabinet certain information related to prescription drug rebates for such drugs; exempt such information and data reported by manufacturers and pharmacy benefit managers to the cabinet from disclosure pursuant to KRS 61.870 to 61.884; require the cabinet to annually submit to the Legislative Research Commission a report that summarizes the information reported to the cabinet by manufacturers and pharmacy benefit managers; require the cabinet to promulgate administrative regulations necessary to carry out the new sections; amend KRS 217.990 to establish a penalty for failure to report; amend KRS 304.17A-164 to restrict cost-sharing amounts charged by insurers and pharmacy benefit managers; prohibit insurers and pharmacy benefit managers from restricting a pharmacist’s ability to inform patients about and to sell less expensive alternative drugs; and amend KRS 304.17A-505 and 304.17C-030 to require disclosure of information related to drug formularies.