The bill amends the Arkansas Pharmacy Benefits Manager Licensure Act by introducing new definitions and requirements related to pharmacy benefits managers (PBMs). Key insertions include the definitions of "opt-out contract," which requires pharmacies to proactively notify PBMs if they wish to opt-out of certain terms that could lead to lower reimbursement rates, and "pharmacy benefits manager national contract to pharmacies," which refers to standardized agreements between PBMs and pharmacies across the U.S. The bill also establishes the concept of placing a PBM on probation for non-compliance, detailing potential penalties and requirements for notification regarding contract terms.

Additionally, the bill enhances the enforcement mechanisms for violations by PBMs, including the imposition of penalties for underpayment violations and the requirement for PBMs to provide specific identification numbers to pharmacies for informed contracting decisions. It also prohibits PBMs from using "take it or leave it" contract terms that violate state law and mandates that any national contracts include Arkansas-specific amendments. The penalties for non-compliance have been expanded to include probation and interest payments on underpayments, ensuring that pharmacies are compensated fairly for their services.

Statutes affected:
SB 544: 23-92-503, 23-92-506, 23-92-508(c), 23-92-508, 23-92-509(b)
Act 775: 23-92-503, 23-92-506, 23-92-508(c), 23-92-508, 23-92-509(b)