Arkansas lawmakers on March 14 approved what is likely the first bill in the U.S. to permit state-level regulation of pharmacy benefit managers, according to Arkansas Times.
Here are four things to know about the legislation.
1. Lawmakers voted on the bill during a special legislative session Republican Arkansas Gov. Asa Hutchinson called for in February. Motivation for the legislation stems from many Arkansas pharmacists who said PBM reimbursement rates have fallen so low, they are actually losing money on prescriptions. This revenue loss is forcing some pharmacies to lay off employees or even go out of business.
2. The bill will give the state's insurance commissioner the power to regulate the business practices of any PBM operating in Arkansas. This authority will include ensuring PBMs reimburse pharmacies at a sufficient rate to ensure "network adequacy," according to the report.
"This does not set a floor or a ceiling for payment," Sen. Ronald Caldwell, R-Wynne, said Wednesday, according to Arkansas Times. "There's nothing in this bill that sets a price. It simply says that a PBM network will not be adequate if … [they do] not provide fair and reasonable reimbursements."
3. The Arkansas Senate passed the bill in a 30-2 vote, while the House passed an identical bill by a vote of 92-2, with three members not voting and two others voting "present."
4. Mr. Hutchinson signed the bill into law March 15. The Arkansas Insurance Department will give PBMs state licenses and develop rules and regulations to reflect the law by September.