The "Community Pharmacy Relief Act," designated as SB252, amends the Code of Alabama 1975 to enhance the regulation of pharmacy benefits managers (PBMs) and improve transparency in the pharmaceutical industry. Key provisions include the introduction of new definitions such as "affiliate" and "independent pharmacy," and the establishment of a minimum reimbursement amount for independent pharmacies. The bill prohibits PBMs from reimbursing independent pharmacies below the Medicaid reimbursement rate and mandates that they pass on 100% of all rebates received from drug manufacturers to health benefit plan clients. Additionally, it introduces regulations to prevent PBMs from engaging in steering practices that favor their affiliated pharmacies and requires them to pay pharmacies directly for prescription drugs.

Significant changes in the bill include the deletion of outdated terms and the insertion of new legal language that clarifies the roles of PBMs, health insurers, and pharmacies. The bill expands the definition of "pharmacy benefits manager" to include entities administering prescription discount programs and introduces the concept of "spread pricing," which requires PBMs to report discrepancies in drug pricing. It also outlines the commissioner's responsibilities in enforcing these regulations, including setting complaint filing fees and conducting audits. The act is designed to support independent pharmacies, protect consumers, and ensure fair practices within the pharmacy benefits system, with most provisions taking effect immediately, while some will commence 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