Stricken language would be deleted from and underlined language would be added to present law.
Act 630 of the Regular Session
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State of Arkansas As Engrossed: H3/18/25 H3/31/25 S4/7/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1531 3
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By: Representative Achor 5
By: Senator J. Boyd 6
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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 As Engrossed: H3/18/25 H3/31/25 S4/7/25 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 As Engrossed: H3/18/25 H3/31/25 S4/7/25 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) A public two-year or four-year institution of higher 4
education, including a community college or technical college; 5
(C) The Division of Arkansas State Police; 6
(D) A municipality; 7
(E) A county; or 8
(F) Any other plan or program that is funded by a state 9
appropriation to furnish, cover the cost of, or otherwise provide for 10
pharmacist services to an individual who resides in or is employed in this 11
state. 12
(c)(1) A pharmaceutical manufacturer or a pharmaceutical manufacturer 13
for Medicaid that expects for their prescription medications to be eligible, 14
considered for payment, and covered in a state government and public plan 15
sponsor for health benefit plans: 16
(A) Shall have an active wholesale distributor permit active and 17
in good standing with the Arkansas State Board of Pharmacy under § 20 -64-505; 18
and 19
(B) Shall not restrict or limit prescription medications more 20
than three (3) months after a launch of a new product to a limited 21
distribution network of pharmacies without having similar access and allowing 22
for upon request or application by pharmacy at least: 23
(i) A local network of public institution academic medical 24
center access; 25
(ii) Geographic diversity of access within the state; 26
(iii) Diverse access for local for -profit and nonprofit 27
pharmacies in good standing with the board and that have experience or 28
accreditation in managing expensive specialty or limited distribution 29
medications; and 30
(iv) The pharmacy meeting medication specific United 31
States Food and Drug Administration guidance or requirements for: 32
(a) Proper and safe storage, handling, 33
monitoring, and drug delivery; 34
(b) Patient or medication data collection, 35
monitoring, or reporting; and 36 As Engrossed: H3/18/25 H3/31/25 S4/7/25 HB1531
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(c) Patient management services. 1
(2) Subdivision (c)(1) of this section does not apply to the 2
State and Public School Life and Health Insurance Program. 3
(d)(1)(A) A pharmaceutical manufacturer or a pharmaceutical 4
manufacturer for Medicaid that requests for restricted networks for six (6) 5
months or longer shall present the request to the board to explain how the 6
restriction will support and not hinder the mission of the board to promote, 7
preserve, and protect the public health, safety, and welfare of citizens of 8
this state. 9
(B) The request under subdivision (d)(1)(A) of this 10
section shall not be effective until the request is approved by the board. 11
(2)(A) When considering the request under subdivision (d)(1)(A) 12
of this section, the board may consider the following factors for a request 13
of a limited network: 14
(i) Costs; 15
(ii) Logistics; 16
(iii) Patient caseload; 17
(iv) The rarity of the prescription drug that is 18
used; 19
(v) The rarity of the disease or condition; and 20
(vi) Any other factors unique or relevant to the 21
medication and disease or condition treated. 22
(B) The limited network shall allow some pharmacies in 23
this state, upon request or application, to participate and access the 24
medications to meet the needs of patients with same day access in this state 25
without requiring patients to use out -of-state or in-state common mail 26
carriers for access. 27
(3) The board may issue a temporary waiver or temporary limited 28
use allowance for utilization, payment, or coverage of prescription drugs 29
from a pharmaceutical manufacturer or a pharmaceutical manufacturer for 30
Medicaid for coverage and payment for a state government and public plan 31
sponsor for a health benefit plan to protect public health and access. 32
(4) A public hearing of the board shall be called as soon as 33
possible to discuss and approve or deny any request for a permanent limited 34
network or restriction relating to state -based Class A pharmacies with retail 35
permits in good standing with the board. 36 As Engrossed: H3/18/25 H3/31/25 S4/7/25 HB1531
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(e) A state government and public plan sponsor for a health benefit 1
plan shall not pay for prescription drugs from a pharmaceutical manufacturer 2
or a pharmaceutical manufacturer for Medicaid who is noncompliant with this 3
section unless the board has granted a temporary waiver or temporary 4
allowance to protect public health and access. 5
(f) If a pharmaceutical manufacturer or a pharmaceutical manufacturer 6
for Medicaid is not in compliance with this section, the board shall fine the 7
pharmaceutical manufacturer or a pharmaceutical manufacturer for Medicaid ten 8
thousand dollars ($10,000) per day of noncompliance. 9
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SECTION 2. DO NOT CODIFY. SEVERABILITY CLAUSE. If any provision of 11
this act or the application of this act to any person or circumstance is held 12
invalid, the invalidity shall not affect other provisions or applications of 13
this act which can be given effect without the invalid provision or 14
application, and to this end, the provisions of this act are declared 15
severable. 16
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SECTION 3. DO NOT CODIFY. TEMPORARY LANGUAGE. Compliance date. 18
A pharmaceutical manufacturer or a pharmaceutical manufacturer for 19
Medicaid shall be in compliance with this act on or before September 1, 2026. 20
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/s/Achor 22
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APPROVED: 4/16/25 25
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