The bill amends Section 27-29.1-7 of the General Laws in Chapter 27-29.1, titled "Pharmacy Freedom of Choice — Fair Competition and Practices," to include new regulations for pharmacy benefit managers (PBMs). It defines PBMs as third-party administrators and mandates that they file annual reports detailing their financial arrangements with insurers and organizational structures. Additionally, the bill stipulates that PBMs must reimburse pharmacies or pharmacists for prescription drugs or services at no less than the national average drug acquisition cost plus a professional dispensing fee, or, if that information is unavailable, at least the wholesale acquisition cost plus the dispensing fee.

Furthermore, the bill empowers the Office of the Health Insurance Commissioner (OHIC) to enforce these provisions, allowing for civil fines of up to $10,000 per violation. It also clarifies that the Attorney General retains the right to take action against PBMs for any legal violations. The bill includes a severability clause, ensuring that if any part of it is deemed unconstitutional or invalid, the remaining provisions will still be enforceable. This act will take effect upon passage.

Statutes affected:
5254: 27-29.1-7