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 benefits managers (PBMs). Specifically, it defines PBMs as third-party administrators and mandates that they be regulated accordingly. The annual report submitted by these administrators to the Department of Business Regulation must now include detailed contractual language outlining financial arrangements with insurers and an organizational chart if the PBM is affiliated with other entities. This reporting is to be made public as per the regulations defined in chapter 2 of title 38.

Additionally, the bill prohibits PBMs from engaging in spread pricing, ensuring that the total amount paid by a health benefit plan and a covered person for a prescription drug does not exceed the amount paid to the pharmacy for dispensing that drug. This provision aims to enhance transparency and fairness in the pricing of prescription medications. The act is set to take effect immediately upon passage.

Statutes affected:
165: 27-29.1-7