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 such as prohibiting new business bids and requiring notifications to affected parties.

Additionally, the bill enhances the enforcement mechanisms for violations, including the imposition of penalties for underpayment violations, which require PBMs to pay interest to impacted pharmacies. It also mandates that PBMs provide necessary claim identification numbers to pharmacies to facilitate informed contracting decisions. The amendments aim to improve transparency and compliance within the pharmacy benefits management sector, ensuring that pharmacies are adequately informed and protected under state law.

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)