The resolution directs the Director of the Legislative Services Agency in Alabama to hire an outside consultant to conduct a comprehensive study on the practices of pharmacy benefits managers (PBMs). PBMs serve as intermediaries between health insurers and pharmacies, managing prescription drug benefits, negotiating drug prices, and reimbursing pharmacies. Concerns have been raised regarding the complex pricing and reimbursement practices of PBMs, which may contribute to inadequate compensation for pharmacies and the alarming rate of pharmacy closures, particularly affecting rural communities in Alabama that are already underserved in terms of healthcare access.
The study aims to analyze the relationship between PBMs and other entities in the drug supply chain, such as drug manufacturers and wholesalers, and to assess the impact of these practices on prescription drug costs, pharmacy operations, and consumer access to medications. The consultant is expected to report findings and recommendations to key legislative leaders by December 1, 2025, following the approval of the resolution by the Governor.