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Senate committee adopts tougher PBM oversight amendment and advances bill to floor
Summary
The Senate Insurance & Commerce Committee adopted an amendment to SB 5‑20 that strengthens the insurance commissioner's authority over pharmacy benefit managers (PBMs) and passed the bill out of committee; pharmacists and the Arkansas Pharmacists Association testified about clawbacks, MAC rules and below‑cost reimbursements.
The Senate Insurance & Commerce Committee on a voice vote adopted an amendment to SB 5‑20 and sent the bill to the Senate floor after testimony from pharmacists and pharmacy‑industry representatives.
Senator Hammer described changes negotiated with the governor’s office that removed a contested "10 50" provision and "added in there some stronger language that the insurance commissioner's office wanted, to give them a bigger stick to pound on the PBMs," he said. The amendment was adopted by the committee and the bill as amended passed by voice vote.
John Vincent of the Arkansas Pharmacists Association told the committee the amendment strengthens transparency and closes loopholes that have allowed PBMs to reclaim dollars from pharmacies. He detailed language in the amendment that applies to "effective rate reimbursement methodologies including generic effective rates, brand effective rates, and direct and indirect remuneration fees," and described clawbacks and MAC‑related "takebacks" that have harmed community pharmacies. Vincent said the amendment also prohibits certain below‑cost reimbursements and requires rebate transparency to the state insurance commissioner.
Pharmacist Britney Sanders of Wellington told senators, "The bill as it's written does absolutely help community pharmacy. It tightens up the back end...to prohibit that takeaway, that take back." She and others said the measure would not solve all pharmacy‑PBM problems, but would increase transparency and provide enforcement tools.
Senator Hammer also announced plans for further review of PBM contracts. "Within a week, I'm gonna file an interim study that will come back to this committee," he said, and he signaled intent to pursue audits of PBM contracts related to Medicaid and to explore potential CMS waiver options to reduce PBM reliance.
The committee recorded the amendment's adoption and later approved the bill by voice vote. Senators who moved and seconded the motions were recorded in committee proceedings; votes were taken by voice and resulted in passage to the floor.
Next steps: SB 5‑20, as amended, was advanced to the Senate floor for further consideration; Senator Hammer said he would seek additional legislative and administrative reviews of PBMs after session.
