The proposed bill establishes the "Pharmacy Services Administrative Organization Act" in Arkansas, which aims to regulate pharmacy services administrative organizations (PSAOs). It introduces a new subchapter to the Arkansas Code, defining key terms such as "administrative services," "pharmacy benefits manager," and "third-party payer." The bill mandates that any entity wishing to operate as a PSAO must obtain a license from the Insurance Commissioner, who will set the application and renewal fees, as well as establish compliance and reporting requirements. Additionally, the bill outlines the necessary disclosures and notice requirements that PSAOs must provide to pharmacies and third-party payers regarding ownership, control, and contract terms.

Furthermore, the legislation includes provisions to ensure transparency and accountability in the relationships between pharmacies, PSAOs, and third-party payers. It requires PSAOs to disclose any ownership interests and to notify relevant parties of material changes in ownership or control. The bill also stipulates that PSAOs cannot compel pharmacies to purchase drugs exclusively from entities they are affiliated with. The Insurance Commissioner is tasked with enforcing the regulations, including the authority to impose civil penalties for violations and to revoke or suspend licenses as necessary.