The proposed bill mandates that health insurance plans provided under the Health Care Purchasing Act must reimburse community-based pharmacies for the full cost of prescription drugs, in addition to a professional dispensing fee. Specifically, the reimbursement for the ingredient cost of a prescription drug must be at least equal to the national average drug acquisition cost at the time the drug is dispensed, or the wholesale acquisition cost if the former is unavailable. Furthermore, the professional dispensing fee must be no less than what is reimbursed for covered outpatient drugs in the Medicaid fee-for-service program.

The bill defines "community-based pharmacy provider" and outlines specific criteria for what constitutes such a provider, ensuring that it is accessible to the public and not owned by government entities, hospitals, or corporate chains with stores outside the state. The bill also includes definitions for key terms such as "ingredient cost," "medicaid," "national average drug acquisition cost," and "wholesale acquisition cost." The provisions of this act are set to take effect on January 1, 2026.