The bill amends the Arkansas Pharmacy Benefits Manager Licensure Act and establishes the Pharmacy Services Administrative Organization Act. It revises the definition of "pharmacy services administrative organization" to focus on aiding community pharmacies in achieving administrative and economic efficiencies, while removing references to pharmacy benefits managers and third-party payers. Additionally, new definitions are introduced, including "pharmacy benefits manager national contract to pharmacies," which outlines standardized agreements between pharmacy benefits managers and pharmacies, and "pharmacy services administrative organization contracting," which refers to agreements between pharmacies and pharmacy benefits managers.

The bill also sets forth registration requirements for pharmacy services administrative organizations, mandating that they register with the State Insurance Department and pay an initial fee. It outlines the necessary disclosures and reporting obligations, including annual reports detailing the number of contracted pharmacies and agreements with pharmacy benefits managers. Furthermore, it establishes provisions for contract transparency, requiring organizations to provide pharmacies with contract details upon request, and allows for complaints against pharmacy benefits managers for non-compliance with state laws. The Insurance Commissioner is tasked with enforcing these regulations and may revoke or suspend registrations as necessary.

Statutes affected:
SB 593: 23-92-503(12), 23-92-503