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Committee adopts amendment, advances SB 1102 to curb nonmedical drug switching mid-plan year
Summary
SB 1102 would prohibit pharmacy benefit managers and insurers from switching a patient off an approved drug mid-plan year without notice and create a formulary exception process. The committee adopted a sponsor amendment clarifying denial-notice signatory requirements and issued a due-pass recommendation
The Senate Health and Human Services Committee adopted a sponsor amendment and gave SB 1102 a due-pass recommendation. The bill aims to prevent ‘‘nonmedical switching’’ by prohibiting pharmacy benefit managers (PBMs) and insurers from limiting or excluding a previously approved prescription drug for a covered individual through the end of that individual’s plan year, unless the prescribing provider agrees or certain notice and exception procedures are followed.
Senator Champ, who led the floor discussion, described the bill as preserving the provider–patient treatment relationship and giving clinicians time to manage a change when plans alter formularies mid-year. The committee adopted a CHAMP amendment (dated Jan. 28, 2025) that clarifies requirements for formulary-exception denial notices and removes the requirement that the denying pharmacist or medical director’s signature appear on the notice while preserving the requirement that a licensed pharmacist or medical director make the denial decision.
Supporters included independent pharmacies and patient advocates, who said forced switches can cause complications and increase downstream costs. Diane McAllister testified for the Arizona Pharmacy Business Council on the clinical harms and estimated costs when stable patients are forced to change therapies. Patient witnesses described real-world delays and disruptions to infusions and other specialty therapies.
Committee action: the committee adopted the 6-page CHAMP amendment and moved SB 1102 as amended with a due-pass recommendation. The roll call was 7 ayes, 0 noes and 0 not voting.
Why it matters: testimony tied nonmedical switching to increased doctor visits, hospitalizations and interruptions of therapies for chronic and severe conditions; the bill also creates a formal exception process for continued coverage of a drug when clinically indicated.
Ending: SB 1102 advanced with a due-pass recommendation after amendment; sponsors and supporters said they will continue stakeholder engagement as the bill moves forward.
