The 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, it requires that the reimbursement for the ingredient cost of a prescription drug 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.

To clarify the definitions relevant to this reimbursement process, the bill outlines what constitutes a "community-based pharmacy provider," specifying that it must be open to the public, located in the state or near the state border, and not owned by certain entities such as government or corporate chains. The bill also defines 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.