The "Pharmacy Benefit Managers Act" establishes a regulatory framework for pharmacy benefit managers (PBMs) within Title 27 of the General Laws concerning insurance. Under this act, PBMs are required to obtain a certificate of authority from the Department of Business Regulation before operating in the state. The act defines key terms related to pharmacy benefit management and mandates that PBMs adhere to specific operational standards, including annual reporting of financial arrangements with drug manufacturers.

The act emphasizes consumer protection by ensuring transparency in PBMs' contractual relationships with insurers and pharmacies. It grants the director of the Department of Business Regulation the authority to reject applications based on the trustworthiness and compliance of the applicant with state laws. Additionally, the act outlines the responsibilities of PBMs, including prohibiting practices that insurers cannot engage in and holding PBMs accountable for the actions of their subcontractors.

The act specifies grounds for the suspension or revocation of a PBM's certificate, such as violations of laws or fraudulent practices, and establishes penalties for non-compliance, including restitution and fines. The collected penalties are to be deposited into a health insurance market integrity fund. Furthermore, the act ensures that all information disclosed by PBMs remains confidential unless the director determines that disclosure is in the public interest. The Department of Business Regulation is empowered to promulgate rules and regulations necessary to implement the provisions of this act. The act is set to take effect upon passage.