The bill aims to enhance access to prescription medications and community pharmacies by amending Chapter 175 of the General Laws. It introduces a new section, Section 226A, which outlines the definitions of brand name and generic drugs, pharmacy audits, and the roles of pharmacy benefit managers (PBMs). Key provisions include requirements for contracts between PBMs and pharmacies to ensure fair payment practices, prohibiting retroactive discounts, and mandating that payments to non-affiliated pharmacies be equal to or greater than those to affiliated pharmacies. Additionally, the bill prohibits pharmacy steering practices and ensures that any pharmacy licensed in Massachusetts can provide medications, including specialty drugs, as long as they meet the required service standards.

Further, the bill establishes guidelines for maximum allowable cost lists and appeals processes for pharmacies contesting drug costs. It mandates that PBMs update these lists regularly and provide transparency regarding the sources used to determine costs. The legislation also protects pharmacies from financial penalties during audits for clerical errors that do not impact patient care. Lastly, it prohibits PBMs from charging community pharmacies for credentialing and empowers the Insurance Commissioner to enforce compliance with the act, ensuring that proprietary information remains confidential.