The bill seeks to amend existing laws concerning pharmacy benefits managers (PBMs) in Arkansas, specifically focusing on the timely processing and payment of pharmacy claims. It introduces the "Pharmacy and Pharmacist Timely Reconciliation and Payment of Pharmacist Services Act," which mandates PBMs to issue payments for clean claims within designated timeframes—7 to 14 days for electronic claims and 30 days for paper claims. The legislation also establishes penalties for late payments, imposing a 12% monthly penalty for delays beyond the required payment date, with certain exceptions for exigent circumstances. Additionally, it amends the Arkansas Pharmacy Audit Bill of Rights to ensure its applicability to the Arkansas Medicaid Program and introduces new definitions related to pharmacy claims.

Moreover, the bill outlines the responsibilities of pharmaceutical manufacturers and PBMs in processing prescription drug claims, including the requirement for manufacturers using vendors or PBMs to process coupons to hold an active wholesale distributor permit. It clarifies that individuals or organizations can pursue claims against pharmacies, providers, or PBMs not covered by the bill, while prohibiting retaliation against those exercising this right. If a clean claim is not resolved within the specified timeframes, the manufacturer must pay a 12% interest penalty per month directly to the affected pharmacy or pharmacist, starting the day after the payment due date until the claim is settled.

Statutes affected:
HB 1620: 17-92-1201, 23-92-503(8), 23-92-503
Act 350: 17-92-1201, 23-92-503(8), 23-92-503