The proposed bill mandates the use of biosimilar medicines under health benefit plans in Arkansas, requiring healthcare providers to prescribe these alternatives when available. It introduces a new subchapter to the Arkansas Code, defining key terms such as "beneficiary," "biosimilar medicine," and "health benefit plan." The bill stipulates that if a healthcare provider initiates a prescription biological product therapy for a beneficiary who has not previously been treated with that product, they must prescribe a biosimilar medicine if one is available. Additionally, health benefit plans are required to maintain an accessible and up-to-date formulary of covered drug products, including any tiering structures and restrictions.

Furthermore, the bill outlines provisions for the coverage of generic drugs and biosimilar medicines, ensuring that if these alternatives are marketed at a lower wholesale acquisition cost than their reference products, they must be made available on the formulary with favorable cost-sharing. The bill clarifies that health benefit plans are not obligated to continue coverage for brand drugs once a generic or biosimilar is available, nor are they required to cover products deemed not medically appropriate or cost-effective. The act is set to take effect on January 1, 2026.