The "Community Pharmacy Relief Act" (SB252 Engrossed) seeks to enhance the regulation of pharmacy benefits managers (PBMs) in Alabama by amending several sections of the Code of Alabama 1975. Key insertions include new definitions for "affiliate," "independent pharmacy," "rebate," and "spread pricing," which clarify the relationships and financial transactions between PBMs, pharmacies, and drug manufacturers. The bill establishes a minimum reimbursement amount for independent pharmacies, prohibits PBMs from using covered individuals' pharmacy data for marketing, and mandates that PBMs pass on 100% of rebates from pharmaceutical manufacturers to health benefit plan clients. Additionally, it introduces civil actions for individuals harmed by PBM practices, allowing for the recovery of damages and ensuring that individuals can choose in-network pharmacies without penalties.

The legislation also includes significant deletions of outdated terms and provisions, while enhancing consumer protection and transparency in the pharmacy benefits management system. It prohibits PBMs from engaging in steering practices that limit pharmacy service utilization and ensures that reimbursements to independent pharmacies are not lower than those provided to PBM affiliates. The bill aims to promote fair practices in the pharmacy benefits industry, protect the rights of pharmacies and consumers, and will take effect immediately, with specific provisions for independent pharmacies set to begin 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