Stricken language would be deleted from and underlined language would be added to present law. *ANS107* 01/16/2025 8:32:23 AM ANS107 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1150 3 4 By: Representative J. Moore 5 By: Senator K. Hammer 6 7 For An Act To Be Entitled 8 AN ACT TO PROHIBIT A HEALTHCARE PAYOR OR A PHARMACY 9 BENEFITS MANAGER FROM OBTAINING CERTAIN PHARMACY 10 PERMITS; AND FOR OTHER PURPOSES. 11 12 13 Subtitle 14 TO PROHIBIT A HEALTHCARE PAYOR OR A 15 PHARMACY BENEFITS MANAGER FROM OBTAINING 16 CERTAIN PHARMACY PERMITS. 17 18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19 20 SECTION 1. DO NOT CODIFY. Legislative findings and intent. 21 (a) The General Assembly finds that: 22 (1) It is beneficial to the State of Arkansas to support patient 23 access to prescription drugs and pharmacy services at fair prices in a market 24 that supports optimal patient care; 25 (2) The Federal Trade Commission and the United States House 26 Committee on Oversight and Government Reform have found evidence of 27 anticompetitive business tactics that have driven locally -operated pharmacies 28 out of business, limiting patient choices and inflating drug prices at 29 pharmacies owned by pharmacy benefits managers and healthcare payors; and 30 (3) The State of Arkansas wishes to minimize conflicts of 31 interest by stopping the pharmacy benefits managers and healthcare payors 32 acting as a "fox guarding the henhouse" by being both a price setter and 33 price taker. 34 (b) It is the intent of the General Assembly that the State of 35 Arkansas shall improve healthcare delivery in the pharmacy market for 36 HB1150 2 01/16/2025 8:32:23 AM ANS107 patients by eliminating certain anticompetitive business tactics as a basic 1 tenet of this act. 2 3 SECTION 2. Arkansas Code Title 17, Chapter 92, Subchapter 4, is 4 amended to add an additional section to read as follows: 5 17-92-414. Prohibition on pharmacy permits, specialty permits, 6 hospital pharmaceutical services permits, and ambulatory care center pharmacy 7 permits — Definitions. 8 (a) As used in this section: 9 (1)(A) "Healthcare payor" means the same as defined in § 23 -92-10 503. 11 (B) "Healthcare payor" includes an entity that: 12 (i) Is managed by a healthcare payor or is a 13 subsidiary of a healthcare payor; or 14 (ii) Has a direct or indirect ownership interest in 15 a healthcare payor. 16 (C)(i) "Healthcare payor" does not include a participating 17 provider that has an ownership interest in a Medicaid provider -led organized 18 care system unless the participating provider is a managed care company, 19 healthcare insurer, pharmacy benefits manager, or otherwise has direct or 20 indirect common ownership with a managed care company, healthcare insurer, or 21 pharmacy benefits manager; 22 (2) "Participating provider" means the same as defined in § 20 -23 77-2703; 24 (3)(A) "Permit" means a permit issued under § 17 -92-405. 25 (B) "Permit" includes a pharmacy permit for a mail -order 26 pharmacy; and 27 (4)(A) "Pharmacy benefits manager" means the same as defined in 28 § 23-92-503. 29 (B) "Pharmacy benefits manager" includes an entity that: 30 (i) Is managed by a pharmacy benefits manager or is 31 a subsidiary of a pharmacy benefits manager; or 32 (ii) Has a direct or indirect ownership interest in 33 a pharmacy benefits manager. 34 (b) A healthcare payor or pharmacy benefits manager shall not acquire 35 direct or indirect interest in, or otherwise hold, directly or indirectly, a 36 HB1150 3 01/16/2025 8:32:23 AM ANS107 permit under § 17-92-405 for the retail sale of drugs or medicines in this 1 state. 2 (c) On and after the effective date of this act, the Arkansas State 3 Board of Pharmacy shall revoke a permit of an entity that violates this 4 section. 5 6 SECTION 3. DO NOT CODIFY. Effective date. 7 This act is effective on and after January 1, 2026. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36