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 1531 3
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By: Representative Achor 5
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For An Act To Be Entitled 8
AN ACT TO PROHIBIT PHARMACEUTICAL MANUFACTURERS FROM 9
RESTRICTING OR LIMITING PRESCRIPTION MEDICATIONS TO A 10
LIMITED DISTRIBUTION NETWORK OF OUT -OF-STATE 11
PHARMACIES; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO PROHIBIT PHARMACEUTICAL MANUFACTURERS 16
FROM RESTRICTING OR LIMITING 17
PRESCRIPTION MEDICATIONS TO A LIMITED 18
DISTRIBUTION NETWORK OF OUT -OF-STATE 19
PHARMACIES. 20
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22
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SECTION 1. Arkansas Code Title 20, Chapter 64, Subchapter 1, is 24
amended to add an additional section to read as follows: 25
20-64-105. Pharmaceutical manufacturer limited distribution of 26
medication — Legislative findings — Definitions. 27
(a) The General Assembly finds that: 28
(1) It is beneficial to this state to support patient access to 29
prescription drugs and pharmacy services in a market that ensures that 30
patients can access safe and effective prescription medications with same day 31
access, as well as patient freedom of choice to utilize local trusted 32
medication experts and state -based local pharmacists who support patients 33
with advice and guidance for safe and effective use of these medications; 34
(2) It may cause harm to patients in this state when local 35
pharmacies, clinics, and hospitals are unable to access prescription 36 HB1531
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medications from pharmaceutical manufacturers or pharmaceutical wholesalers 1
due to out-of-state limited distribution to pharmacies utilizing: 2
(A) Pharmacy benefits manager -affiliated mail order 3
pharmacies; 4
(B) Publicly traded corporation pharmacies; 5
(C) Pharmaceutical manufacturer -affiliated mail order 6
pharmacies; 7
(D) Insurance company -affiliated mail order pharmacies; or 8
(E) Pharmaceutical wholesaler -affiliated mail order 9
pharmacies; 10
(3) The reasons for the limited distribution networks by 11
pharmaceutical manufacturers are not often disclosed or may not operate with 12
optimal patient safety and same day patient access in mind; 13
(4) The supply chain that brings prescription medications from 14
the pharmaceutical manufacturer to the pharmacy is often complex and lacks 15
transparency; and 16
(5) Having more transparency and oversight concerning limited 17
distribution medications would: 18
(A) Protect patients with better and more stable 19
prescription drug inventory for both immediate and long -term patient care 20
needs; and 21
(B) Better respond to future national security threats and 22
natural disasters in this state. 23
(b) As used in this section: 24
(1) “Pharmaceutical manufacturer” means a business or entity 25
that makes, processes, or packages prescription drugs, over -the-counter 26
medications, or medical devices to sell in pharmacies or other healthcare 27
facilities, including any activities that manipulate, test, or control the 28
product or process; 29
(2) "Pharmaceutical manufacturer for Medicaid" means an entity 30
or business that is engaged in manufacturing, preparing, propagating, 31
compounding, processing, packaging, repackaging, or labeling of a 32
prescription drug that is eligible in the Medicaid Drug Rebate Program or 33
agrees to participate in the Medicaid Drug Rebate Program to pay a rebate to 34
states for prescription drugs covered by the Arkansas Medicaid Program; and 35
(3) "State government and public plan sponsor" means an employer 36 HB1531
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sponsor of a health benefit plan for employees that is established or 1
maintained by: 2
(A) The Arkansas Municipal League; 3
(B) The Employee Benefits Division; 4
(C) A public two-year or four-year institution of higher 5
education, including a community college or technical college; 6
(D) The Division of Arkansas State Police; 7
(E) A municipality; 8
(F) A county; or 9
(G) Any other plan or program that is funded by a state 10
appropriation to furnish, cover the cost of, or otherwise provide for 11
pharmacist services to an individual who resides in or is employed in this 12
state. 13
(c) A pharmaceutical manufacturer or a pharmaceutical manufacturer for 14
Medicaid that expects for their prescription medications to be eligible, 15
considered for payment, and covered in a state government and public plan 16
sponsor for health benefit plans: 17
(1) Shall have an active wholesale distributor permit active and 18
in good standing with the Arkansas State Board of Pharmacy under § 20 -64-505; 19
and 20
(2) Shall not restrict or limit prescription medications more 21
than three (3) months after a launch of a new product to a limited 22
distribution network of pharmacies without having similar access with at 23
least: 24
(A) A local network of public institution academic medical 25
center access; 26
(B) Geographic diversity of access within the state; and 27
(C) Diverse access for local for -profit and nonprofit 28
pharmacies in good standing with the board and that have experience or 29
accreditation in managing expensive specialty or limited distribution 30
medications. 31
(d)(1)(A) A pharmaceutical manufacturer or a pharmaceutical 32
manufacturer for Medicaid that requests for restricted networks for six (6) 33
months or longer shall present the request to the board to explain how the 34
restriction will support and not hinder the mission of the board to promote, 35
preserve, and protect the public health, safety, and welfare of citizens of 36 HB1531
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this state. 1
(B) The request under subdivision (d)(1)(A) of this 2
section shall not be effective until the request is approved by the board. 3
(2)(A) When considering the request under subdivision (d)(1)(A) 4
of this section, the board may consider the following factors for a request 5
of a limited network: 6
(i) Costs; 7
(ii) Logistics; 8
(iii) Patient caseload; 9
(iv) The rarity of the prescription drug that is 10
used; and 11
(v) The rarity of the disease or condition. 12
(B) The limited network shall allow some pharmacies in 13
this state to participate and access the medications to meet the needs of 14
patients with same day access in this state without requiring patients to use 15
out-of-state or in-state common mail carriers for access. 16
(3) The board may issue a temporary waiver or temporary limited 17
use allowance for utilization, payment, or coverage of prescription drugs 18
from a pharmaceutical manufacturer or a pharmaceutical manufacturer for 19
Medicaid for coverage and payment for a state government and public plan 20
sponsor for a health benefit plan to protect public health and access. 21
(4) A public hearing of the board shall be called as soon as 22
possible to discuss and approve or deny any request for a permanent limited 23
network or restriction relating to state -based Class A pharmacies with retail 24
permits in good standing with the board. 25
(e) A state government and public plan sponsor for a health benefit 26
plan shall not pay for prescription drugs from a pharmaceutical manufacturer 27
or a pharmaceutical manufacturer for Medicaid who is noncompliant with this 28
section unless the board has granted a temporary waiver or temporary 29
allowance to protect public health and access. 30
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