Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pharmacy Benefit Managers topic
No spam. Unsubscribe anytime.
Committee hears amendment to PBM licensing provisions; sponsor to revise language after concerns
Summary
Members heard an amendment to PBM licensure provisions that reduces proposed per‑violation fines and removes a broad enforcement clause; lawmakers and department counsel agreed to correct drafting problems and return the amendment for future consideration after stakeholders and legal questions (including ERISA) were raised.
An amendment to PBM‑related licensure language drew sustained committee attention before the sponsor agreed to withdraw it for corrections and return it for later consideration.
Senator Hammer presented the amendment and introduced Booth Ray, general counsel for the Arkansas Insurance Department, who said the department negotiated with PBM trade groups to reduce a proposed monetary penalty from $10,000 to $5,000 per violation and to delete language that would have given the commissioner apparently unlimited enforcement power. "We agreed to reduce the penalty amounts... and agreed to remove the unlimited power provision of the commissioner," Ray said, describing the change as the product of negotiation with PBM stakeholders.
Members questioned whether the amendment would limit the department's existing audit and examination authority. Ray said the department retains statutory audit and examination powers and would still be able to request rebate and spread‑pricing data; however, he recommended treating competitive rebate and financial information as proprietary so the department could review it without public disclosure.
Several senators flagged drafting and typographical problems in the amendment and urged the sponsor to clean up the language. A representative of the State Chamber registered opposition pending a legal review for ERISA issues and asked that the committee wait for counsel to weigh in.
Senator Hammer said he would pull the amendment, have it engrossed and member‑zoned, incorporate requested corrections and return it to committee. The committee did not vote on the amendment at this meeting.
