The proposed "Pharmacy Benefit Managers Act" introduces 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 valid certificate of authority from the health insurance commissioner to operate legally. The act defines key terms related to pharmacy benefit management and mandates that PBMs submit detailed organizational documents, financial statements, and business plans to ensure transparency.

Additionally, PBMs must report annually to the health insurance commissioner on financial arrangements, pricing discounts, rebates, and patient utilization data concerning prescription drugs. The act includes provisions for penalties for non-compliance, including restitution and fines, and establishes a provisional certificate of authority for entities that do not meet all requirements immediately.

The bill outlines specific reporting requirements for PBMs, including disclosures on rebate percentages and dollar amounts retained, as well as any compensation received from drug manufacturers. The health insurance commissioner is empowered to impose civil penalties for violations and to publish aggregated data from PBM reports while maintaining the confidentiality of proprietary information.

Grounds for suspension or revocation of a PBM's certificate include violations of laws, misleading information, or fraudulent practices. The act emphasizes compliance with state laws and regulations, superseding previous legislation related to PBM transparency, and is set to take effect on January 1, 2027.