This bill proposes significant updates to the Arizona Revised Statutes regarding pharmacy benefit managers (PBMs). It introduces new sections that establish requirements for PBMs, including prohibiting them from reimbursing pharmacies below the acquisition cost of drugs and mandating the adoption of specific reimbursement formulas. The bill also outlines an appeal process for pharmacies to contest reimbursement errors, ensuring they can receive additional payments if their claims are underpaid. Furthermore, it defines key terms such as "acquisition cost," "claim payment error," and "local pharmacy," which will help clarify the regulations surrounding PBM operations.

Additionally, the bill mandates transparency in PBM operations by requiring them to disclose all fees and rebates in contracts with health plans and to submit an annual transparency report detailing their financial interactions. It establishes a monitoring advisory council to oversee PBM practices and enforces penalties for violations of the new regulations. The act is set to take effect on December 31, 2026, aiming to enhance accountability and fairness in the pharmacy benefit management sector.

Statutes affected:
Introduced Version: 20-3337, 20-3337.01, 20-3337.02, 20-3337.03, 20-3337.04, 20-3337.05