The "Pharmacy Benefit Managers Act" introduces a new regulatory framework for pharmacy benefit managers (PBMs) within Title 27 of the General Laws concerning insurance. The act requires PBMs to obtain a certificate of authority from the health insurance commissioner to operate in the state. It allows for provisional certificates valid for up to two years during the application process. PBMs must submit annual reports detailing their financial arrangements, including pricing discounts, rebates, and other financial incentives. The act outlines the necessary information for the certificate application, such as organizational documents, financial statements, and business plans.

A fee structure is established, with a $10,000 fee for both initial and provisional certificates. The health insurance commissioner is granted the authority to impose civil penalties for non-compliance and to publish aggregated data from the reports while maintaining the confidentiality of proprietary information. The act specifies grounds for the suspension or revocation of a PBM's certificate, including violations of laws, misrepresentation, and financial irresponsibility. It emphasizes compliance with state laws and regulations, superseding previous legislation related to PBM transparency. The act is set to take effect on January 1, 2027.