Committee advances two measures targeting pharmacy benefit managers and service administrators
Lawmakers voted to advance legislation giving the Insurance Department broader enforcement authority over pharmacy benefit managers (PBMs) and a separate bill to register pharmacy service administrative organizations (PSAOs). Sponsors said both bills aim to curb underpayments and contract practices that harm independent pharmacies.
The full story
State Representative Jimmy Gazzaway and John Benson, CEO of the Arkansas Pharmacists Association, described Senate Bill 544 as strengthening enforcement tools for the Arkansas Insurance Department against pharmacy benefit managers (PBMs). The bill clarifies definitions, requires Arkansas-specific contract terms, strengthens prohibited-practice language, and authorizes penalties and enforcement remedies, including a financial penalty described in the bill as 12% interest per month on underpayment amounts.
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