This bill amends Kentucky law to establish new requirements for prescription drug cost-sharing and rebates in health insurance plans. The bill defines key terms like “rebate” and “cost sharing” and mandates that at least 85% of rebates received by insurers or pharmacy benefit managers must be passed through to consumers by reducing their out-of-pocket costs at the point of sale. Any remaining rebates must be used to lower health plan premiums. The legislation also includes strict confidentiality provisions, treating rebate information as a trade secret that cannot be publicly disclosed in a way that could identify specific products, manufacturers, or financial details. The new requirements will apply to various types of health plans, including limited health service benefit plans, state employee health plans, and self-insured employer group health plans provided by state postsecondary education institutions. These provisions will take effect for health plans issued or renewed on or after January 1, 2026, with the goal of making prescription drugs more affordable for consumers by ensuring that negotiated price concessions and rebates directly benefit patients.