Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1442 3
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By: Representative Achor 5
By: Senators D. Wallace, C. Penzo 6
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For An Act To Be Entitled 8
AN ACT TO SET RESTRICTIONS ON PHARMACY CONTRACTING 9
AND CONFLICTS OF INTEREST; TO ESTABLISH 10
PHARMACEUTICAL PATIENT FREEDOM OF CHOICE; AND FOR 11
OTHER PURPOSES. 12
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Subtitle 15
TO SET RESTRICTIONS ON PHARMACY 16
CONTRACTING AND CONFLICTS OF INTEREST; 17
AND TO ESTABLISH PHARMACEUTICAL PATIENT 18
FREEDOM OF CHOICE. 19
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
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SECTION 1. Arkansas Code Title 17, Chapter 92, Subchapter 4, is 23
amended to add an additional section to read as follows: 24
17-92-414. Prohibition of pharmacy contracting - Conflicts of interest 25
– Pharmacy permit holder responsibilities — Definition. 26
(a) It is the intent of the General Assembly to preserve patient 27
access, to improve quality of care outcomes, and to prevent anti -competitive 28
patient steering for pharmacy care services. 29
(b) As used in this section, “parent entity” means a federally 30
qualified health center, a Federally Qualified Health Center Look -Alike, or a 31
for-profit, nonprofit, tax -exempt, or governmentally funded hospital that has 32
a direct or indirect interest or ownership in a licensed pharmacy permit for 33
the sale at retail of drugs and medicines. 34
(c) A parent entity shall not: 35
(1) Financially incentivize a patient or plan beneficiary to 36 HB1442
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obtain a pharmacist's services from a pharmacy with terms that are not 1
offered equally at other network pharmacies; 2
(2)(A) Allow a pharmacy to be a limited provider of pharmacist's 3
services through the use of a network design that limits the number of 4
providers in said network. 5
(B) The board may exempt a parent entity from subdivision 6
(c)(2)(A) of this section on a per -pharmacy-contract basis if the parent 7
entity demonstrates a verified net financial loss for the proposed contract; 8
or 9
(3) Limit a patient’s freedom of choice through financial 10
incentives. 11
(d) Upon receiving a complaint involving a violation of subsection (c) 12
of this section, the board shall investigate the complaint and schedule a 13
hearing within thirty (30) business days of receipt of the complaint. 14
(e) A repetitive violation of this section is also a violation of the 15
Unfair Practices Act, § 4 -75-201 et seq. 16
(f) Market-based cash pricing of a drug or medication delinked from 17
any program assistance, contract, or network agreement of a drug or 18
medication is not a financial incentive under this section. 19
(g)(1) A parent entity that owns pharmacies and offers prospective 20
cash savings plans through the 340B Drug Pricing Program shall allow other 21
network pharmacies to participate in the prospective cash savings plan. 22
(2) The board may exempt a parent entity from subdivision (g)(1) 23
of this section on a per -pharmacy-contract basis if the parent entity 24
demonstrates a violation of terms or conditions of the 340B Drug Pricing 25
Program prospective cash savings plan by the contracted pharmacy. 26
(h) The board shall review for any violation of this section during 27
the inspections conducted by the board. 28
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SECTION 2. Arkansas Code Title 23, Chapter 99, is amended to add an 30
additional subchapter to read as follows: 31
Subchapter 19 — Pharmaceutical Patient Freedom of Choice 32
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23-99-1901. Legislative intent. 34
It is the intent of the General Assembly to provide a right to freedom 35
of choice in selecting prescriptions or pharmaceutical supplies and services 36 HB1442
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from a pharmacy of the patient or responsible party. 1
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23-99-1902. Definition. 3
As used in this subchapter, “pharmacy treatment plan” means a plan of 4
care for choice in preferred pharmacy, change of pharmacy, or choice of 5
multiple pharmacies depending on a patient’s health conditions, needs, and 6
preferences. 7
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23-99-1903. Pharmaceutical patient freedom of choice. 9
(a) A patient or his or her responsible party shall have freedom of 10
choice of pharmacy or pharmacy treatment plan by any permit holder of the 11
Arkansas State Board of Pharmacy. 12
(b) A patient may make a selection of pharmacy or pharmacy treatment 13
plan only when the patient or his or her responsible party is fully informed 14
of his or her freedom of choice. 15
(c) Any permit holder of the board shall not participate in any plan, 16
agreement, or arrangement that eliminates or detrimentally affects the 17
traditional relationship of physician, patient, pharmacist, and the patient's 18
freedom of choice of professional services. 19
(d)(1) If a for-profit, nonprofit, tax exempt, or governmentally 20
funded hospital, federally qualified health center, or a Federally Qualified 21
Health Center Look-Alike that has direct or indirect interest in a permit 22
holder of the board and a patient is receiving prescriptions issued by 23
prescribers providing services in or for the hospital, emergency room, health 24
system clinic, or any other associated health system facilities for the 25
permit holder, the permit holder shall document the patient's choice of 26
pharmacy or pharmacy treatment plan. 27
(2) The permit holder under subdivision (d)(1) of this section 28
shall maintain: 29
(A) Documentation of the patient's choice of pharmacy or 30
pharmacy treatment plan in the patient's medical record, pharmacy management 31
system, or files; and 32
(B) Policies and procedures that document how the 33
patient's freedom of choice of pharmacy or pharmacy treatment plan is 34
maintained, including brand name and specialty prescriptions that may be 35
eligible under the 340B Drug Pricing Program. 36 HB1442
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(e) A patient may choose or change the provider pharmacy at any time. 1
(f) The board may review documentation, policies, and procedures 2
required under this section for the permit holders of the board during an 3
inspection by the board. 4
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