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Senate advances new rules for pharmacy benefit managers; lawmakers split over oversight of PSAOs
Summary
The Senate Insurance & Commerce Committee heard competing bills to tighten oversight of pharmacy benefit managers (PBMs) and pharmacy services administrative organizations (PSAOs). Lawmakers debated licensing, enforcement tools for the Insurance Department and whether to require PSAO disclosures; one PSAO-focused bill was pulled for further work.
Senate committee members on Wednesday considered multiple bills aimed at increasing transparency and enforcement over pharmacy benefit managers (PBMs) and the pharmacy services administrative organizations (PSAOs) that contract with independent pharmacies.
Supporters said the measures respond to years of complaints from independent pharmacists who say reimbursement rates and contract changes by PBMs and related contracting entities have left pharmacies unpaid or underpaid. Critics and industry representatives urged narrower, clearer language and recommended further negotiation before final passage.
Senate Bill 544: PBM licensure amendments Senate Bill 544 (sponsor: Sen. Mark Johnson) would amend the Arkansas PBM Licensure Act to add definition clarifications, a new enforcement option short of license revocation (probation targeted at specific networks rather than an entire PBM), expanded fining authority (restating that fines up to $5,000 may be applied for any violation of the licensure act), and a mechanism to require interest and underpayment remedies to pharmacies (including a…
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