A provision in Nevada's SB494 gives small businesses a new way to lower prescription drug costs for employee health plans—but most owners don't know it exists.
Most Nevada real estate and property management owners don't realize they may have just gained access to a significant cost-control tool for employee health insurance. Buried in SB494, a bill focused on health and human services, is a provision that could meaningfully reduce what small businesses pay for prescription drugs.
Effective July 1, 2025, small businesses that self-insure employee health plans under Nevada Revised Statutes 287.010 can now opt into the state's Medicaid bulk prescription drug purchasing agreements. This is the provision found in Section 66 on Page 77 of SB494.
Here's what that means in plain terms: Nevada's Medicaid program negotiates volume discounts with pharmaceutical manufacturers and pharmacy benefit managers. Those negotiated rates—which are typically much lower than what commercial insurers pay—are now available to qualifying small business health plans. Previously, only government programs and large employers had access to these rates.
The provision applies specifically to businesses that provide employee health insurance through self-insurance arrangements under NRS 287.010. This covers many property management firms and small real estate companies that pool their health insurance risk rather than buying traditional commercial plans.
If your business currently self-insures employee health coverage, you likely qualify.
There's no competitive bidding process. There's no separate procurement. Eligible businesses simply notify the Nevada Health Authority of their intent to participate. Once notification is submitted, the business gains access to the state's negotiated drug pricing agreements.
This streamlined process removes administrative friction—you're not negotiating rates or filling out lengthy applications. You're joining an existing purchasing pool that already has leverage with drug manufacturers.
Prescription drug costs are one of the largest drivers of health insurance expense for small employers. A single employee on specialty medications can significantly impact your plan's costs and, by extension, your premiums or out-of-pocket liabilities.
By accessing Medicaid's negotiated rates, self-insured plans can reduce what they pay at the pharmacy counter. The savings flow directly to the plan—meaning lower costs for your business and potentially lower out-of-pocket costs for employees.
For property management companies operating on thin margins, even modest reductions in health insurance costs can improve the bottom line. For employees, lower prescription costs mean better medication adherence and fewer financial barriers to necessary treatment.
If your business self-insures employee health coverage, review your current prescription drug costs with your benefits advisor or broker. Ask whether your plan would benefit from accessing Nevada's Medicaid purchasing agreements. The effective date is July 1, 2025, so there's time to evaluate and plan.
Contact the Nevada Health Authority to understand the notification process and any plan requirements for participation.
Source: Nevada SB494 (BDR 18-1116), Section 66, Page 77. Effective July 1, 2025.