The proposed legislation, known as the "Pharmacy Services Administrative Organization Act," aims to regulate pharmacy services administrative organizations (PSAOs) in Arkansas. It introduces a new subchapter to the Arkansas Code, which includes definitions for key terms such as "administrative services," "pharmacy benefits manager," and "third-party payer." The act mandates that any entity wishing to operate as a PSAO must obtain a license from the Insurance Commissioner, who will establish the necessary application and renewal fees, as well as compliance and reporting requirements. Additionally, the act stipulates that PSAOs must provide transparency regarding their ownership and control structures, ensuring pharmacies are informed about any affiliations that may affect their operations.

Furthermore, the legislation outlines specific notice and disclosure requirements for contracts between PSAOs and pharmacies, including the obligation to provide copies of contracts and amendments within a specified timeframe. It also addresses the need for timely communication regarding disputes between pharmacies and third-party payers, as well as the handling of appeals. The Insurance Commissioner is tasked with enforcing the provisions of this act, with the authority to impose civil penalties for violations and to revoke or suspend licenses as necessary. Overall, the act seeks to enhance the regulatory framework governing PSAOs, promoting accountability and transparency in pharmacy services.