The bill establishes new regulations for contracts between the Oklahoma Employees Insurance Plan and pharmacy benefits managers (PBMs). It defines key terms such as "pharmacy benefits manager" and "protected health information" by referencing existing definitions in the Oklahoma Statutes. The bill prohibits awarding contracts to PBMs that have faced significant legal or financial penalties, specifically those that have settled lawsuits or been fined over $4 million in the past five years. Additionally, it mandates that the scoring of requests for proposals (RFPs) favor bidders that have been based in Oklahoma for at least one year and disfavor PBMs with certain corporate affiliations, including those connected to health insurance companies, retail pharmacy chains, specialty pharmacies, mail-order pharmacies, or pharmaceutical manufacturers.

Furthermore, the bill requires that any contracted PBM must certify compliance with the Oklahoma Health Information Exchange Act and possess SOC 2 Type 2 certification for itself and any contractors with access to protected health information. This legislation aims to enhance the integrity and accountability of PBMs involved with the Oklahoma Employees Insurance Plan. The act is set to take effect on November 1, 2026.