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 on probation" for PBMs that fail to comply with the Act, detailing potential penalties such as prohibiting advertising or requiring notifications to contracted plans.

Additionally, the bill outlines new obligations for PBMs regarding transparency and communication with pharmacies, including the requirement to provide specific identification numbers and to give at least sixty days' notice for opt-out contracts. It also introduces penalties for underpayment violations, mandating a 12% monthly interest payment to affected pharmacies. The enforcement provisions are strengthened, allowing for penalties, probation, or revocation of licenses for non-compliance, and ensuring that pharmacies are not responsible for collecting underpayment amounts from patients. Overall, the bill aims to enhance accountability and transparency in the operations of pharmacy benefits managers in Arkansas.

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)