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 current contracted plans.

Additionally, the bill outlines new obligations for PBMs regarding transparency and communication with pharmacies. It mandates that PBMs provide essential claims information upon request and clearly list this information in contracts, including opt-out contracts that must give at least sixty days' notice. The bill also introduces penalties for underpayment violations, requiring PBMs to pay interest on underpayments to affected pharmacies. Furthermore, it allows for the imposition of fines and other penalties for violations of the Act, including the potential for probation and revocation of licenses.

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