The "Community Pharmacy Relief Act," designated as SB252, amends the Code of Alabama 1975 to enhance the regulation of pharmacy benefits managers (PBMs) and protect independent pharmacies. Key provisions include the introduction of new definitions such as "independent pharmacy," "rebate," and "spread pricing," which clarify the roles of PBMs. The bill mandates that PBMs reimburse independent pharmacies at least at the Medicaid reimbursement rate and prohibits practices that limit pharmacy choice or impose excessive fees. Additionally, it requires PBMs to pass on 100% of rebates from pharmaceutical manufacturers to health benefit plan clients, ensuring greater transparency and fairness in the pharmacy benefits landscape.

Significant changes in the bill include the deletion of outdated terms and the insertion of new legal language that broadens the definition of PBMs to include entities administering prescription discount programs. The bill also establishes the Commissioner of Insurance as the enforcer of these regulations, with the authority to conduct audits and impose civil penalties for violations. Furthermore, it protects pharmacists from retaliation for providing cost information to patients and allows them to refuse dispensing drugs if reimbursement is below their costs. The act is set to take effect immediately, with certain provisions becoming effective on October 1, 2025.

Statutes affected:
Introduced: 27-45A-3, 27-45A-5, 27-45A-6, 27-45A-7, 27-45A-8, 27-45A-10
Engrossed: 27-45A-3, 27-45A-5, 27-45A-6, 27-45A-7, 27-45A-8, 27-45A-10
Enrolled: 27-45A-3, 27-45A-5, 27-45A-6, 27-45A-8, 27-45A-10