Senate committee considers competing bills to regulate PBMs and PSAOs

The Senate Insurance & Commerce Committee heard several bills that would expand oversight of pharmacy benefit managers and the third parties that act on behalf of independent pharmacies.

Supporters said the bills seek to give Arkansas pharmacies clearer contract terms, stronger enforcement tools and a route for pharmacies to recover underpayments. Opponents and some industry witnesses urged additional drafting and coordination between competing proposals.

The most detailed proposal, presented as Senate Bill 544, would add a definition for “opt‑out contracts,” give pharmacies a 60‑day review period when new contract terms are introduced, and require PBM national contracts to include state‑specific rates, prompt‑payment terms and provider manuals for Arkansas pharmacies. It would expand the Insurance Department’s enforcement authority under the PBM licensure act (including a clarified ability to fine violations up to $5,000) and allow the department to assess 12% interest for underpayments that result from violations of the law, according to testimony by John Vincent of the Arkansas…