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 SENATE BILL 593 3
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By: Senator J. Boyd 5
By: Representative Achor 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE ARKANSAS PHARMACY BENEFITS 9
MANAGER LICENSURE ACT; TO CREATE THE PHARMACY 10
SERVICES ADMINISTRATIVE ORGANIZATION ACT; AND FOR 11
OTHER PURPOSES. 12
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Subtitle 15
TO AMEND THE ARKANSAS PHARMACY BENEFITS 16
MANAGER LICENSURE ACT; AND TO CREATE THE 17
PHARMACY SERVICES ADMINISTRATIVE 18
ORGANIZATION ACT. 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 § 23 -92-503(12), concerning the definition of 23
"pharmacy services administrative organization" used under the Arkansas 24
Pharmacy Benefits Manager Licensure Act, is amended to read as follows: 25
(12) "Pharmacy services administrative organization" means an 26
organization that helps community pharmacies and pharmacy benefits managers 27
or third-party payers achieve administrative and economic efficiencies, 28
including contracting , reimbursement, and payment efficiencies; 29
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SECTION 2. Arkansas Code § 23 -92-503, concerning definitions used 31
under the Arkansas Pharmacy Benefits Manager Licensure Act, is amended to add 32
additional subdivisions to read as follows: 33
(16)(A) "Pharmacy benefits manager national contract to 34
pharmacies" means a standardized agreement entered into by a pharmacy 35
benefits manager and a network of pharmacies across the United States in 36 SB593
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which a pharmacy is, either directly or indirectly, passed through a pharmacy 1
services administrative organization to agree to certain pricing terms and 2
conditions if that pharmacy is included within a pharmacy benefits manager 3
network. 4
(B) "Pharmacy benefits manager national contract to 5
pharmacies" includes a nationwide network of pharmacies that have entered 6
into a contract for national reimbursement rates, terms, and conditions that 7
are not Arkansas-specific with a pharmacy benefits manager to provide 8
pharmacist services, including without limitation dispensing medications to a 9
patient within the pharmacy benefits manager network; and 10
(17) "Pharmacy services administrative organization contracting" 11
means an agreement between a pharmacy or pharmacist with a pharmacy benefits 12
manager and other healthcare payors for a health benefit plan. 13
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SECTION 3. Arkansas Code Title 23, Chapter 99, is amended to add an 15
additional subchapter to read as follows: 16
Subchapter 20 — Pharmacy Services Administrative Organization Act 17
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23-99-2001. Title. 19
This subchapter shall be known and may be cited as the "Pharmacy 20
Services Administrative Organization Act". 21
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23-99-2002. Definitions. 23
As used in this subchapter: 24
(1) "Health benefit plan" means the same as defined in § 23 -92-25
503; 26
(2) "Healthcare payor" means the same as defined in § 23 -92-503; 27
(3) "Pharmacy benefits manager" means the same as defined in § 28
23-92-503; 29
(4) "Pharmacy benefits manager national contract to pharmacies” 30
means the same as defined in § 23 -92-503; 31
(5) "Pharmacy services administrative organization" means the 32
same as defined in § 23 -92-503; 33
(6) "Pharmacy services administrative organization contracting" 34
means the same as defined in § 23-92-503; and 35
(7) "Pharmacy services administrative organization -pharmacy 36 SB593
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contract" means a contractual agreement between a pharmacy services 1
administrative organization and a pharmacy by which a pharmacy services 2
administrative organization agrees to negotiate with a pharmacy benefits 3
manager and other healthcare payors for health benefit plans on behalf of a 4
pharmacy or pharmacist and to provide other services as stated in the 5
pharmacy services administrative organization -pharmacy contract. 6
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23-99-2003. Registration requirements — Application — Fees. 8
(a)(1) A pharmacy services administrative organization shall not 9
provide any service in Arkansas without being registered with the State 10
Insurance Department under this subchapter. 11
(2)(A) An initial registration fee for a pharmacy services 12
administrative organization is two hundred fifty dollars ($250). 13
(B) The Insurance Commissioner may charge registration 14
renewal fees as established by rule. 15
(b)(1) The commissioner shall prescribe the application for 16
registration to operate in Arkansas as a pharmacy services administrative 17
organization. 18
(2) An application for registration as a pharmacy services 19
administrative organization shall include: 20
(A) The full business name of the pharmacy services 21
administrative organization; 22
(B) The name, business address, phone number, website, and 23
email address for the primary contact; 24
(C) The name, business address, phone number, website, and 25
email address for the contact designated to handle grievances; and 26
(D) The employer identification number, also known as the 27
federal employer identification number or the federal tax identification 28
number. 29
(3) The commissioner may charge application fees as established 30
by rule. 31
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23-99-2004. Notice and disclosure requirements. 33
(a)(1) Beginning on or before March 1, 2026, a pharmacy services 34
administrative organization shall file with the Insurance Commissioner an 35
annual report for the preceding calendar year. 36 SB593
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(2) A report may be requested by the commissioner on renewal of 1
the registration of the pharmacy services administrative organization if the 2
information is needed. 3
(b) The annual report required under subsection (a) of this section 4
shall: 5
(1) Include an approximate number of pharmacies that the 6
pharmacy services administrative organization has a pharmacy services 7
administrative organization -pharmacy contract with within the state; and 8
(2) Include the names of: 9
(A) The pharmacy benefits managers with which the pharmacy 10
services administrative organization has an agreement; and 11
(B) The pharmacy benefits managers with which the pharmacy 12
services administrative organization does not have an agreement. 13
(c) A pharmacy services administrative organization shall annually 14
disclose to the State Insurance Department and to pharmacists who or 15
pharmacies that have an active pharmacy services administrative organization -16
pharmacy contract the extent of any ownership or control of the pharmacy 17
services administrative organization by a parent company, subsidiary, or 18
other organization that: 19
(1) Manufactures, sells, or distributes prescription drugs and 20
is licensed, permitted, or registered as a wholesale distributor in this 21
state with the Arkansas State Board of Pharmacy; or 22
(2) Sells prescription drugs and medicines at retail and is 23
licensed, permitted, or registered as a retail pharmacy with the board. 24
(d) A pharmacy services administrative organization shall notify the 25
department in writing within five (5) business days of any material change in 26
its ownership or control relating to any company, subsidiary, or other 27
organization described in subsection (c) of this section. 28
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23-99-2005. Pharmacy services administrative organization contracting 30
— Requirements. 31
(a)(1) A pharmacy benefits manager shall offer and include in any 32
existing pharmacy services administrative organization a separate Arkansas -33
based amendment that complies with the Arkansas Pharmacy Benefits Manager 34
Licensure Act, § 23-92-501 et seq., and other state laws on or before January 35
1, 2026. 36 SB593
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(2) A contract provision that states that the pharmacy benefits 1
manager agrees to comply with applicable laws does not comply with the 2
requirement in subdivision (a)(1) of this section. 3
(3) The Insurance Commissioner may review the pharmacy services 4
administrative organization agreements that are executed between a pharmacy 5
and a pharmacy benefits manager if the commissioner has an active 6
investigation of state laws being violated by the pharmacy benefits manager 7
related to an executed agreement with a pharmacy services administrative 8
organization. 9
(b)(1)(A) A pharmacy services administrative organization -pharmacy 10
contract shall include a provision that requires a pharmacy services 11
administrative organization to provide to a pharmacy a copy of the pharmacy 12
services administrative organization -pharmacy contract, amendment, payment 13
schedule, or reimbursement rates within thirty (30) days of the receipt of a 14
written request from a pharmacy or pharmacist after the execution of a 15
pharmacy services administrative organization -pharmacy contract, or an 16
amendment to a pharmacy services administrative organization -pharmacy 17
contract, signed on behalf of the pharmacy if it is a new agreement, new 18
network, or has a reduction in reimbursement rates compared to the previous 19
agreement. 20
(B) The pharmacy services administrative organization may 21
respond to a written request from a pharmacy or a pharmacist under 22
subdivision (b)(1)(A) of this section by making the pharmacy services 23
administrative organization -pharmacy contract document or an amendment or 24
update to the pharmacy services administrative organization -pharmacy contract 25
document available through a pharmacy portal. 26
(2) Upon written request from a pharmacy or pharmacist for an 27
existing pharmacy services administrative organization -pharmacy contract, a 28
pharmacy services administrative organization -pharmacy contract shall include 29
a provision that requires a pharmacy services administrative organization to 30
provide to a pharmacy a copy of the pharmacy services administrative 31
organization-pharmacy contract, amendment, payment schedule, or reimbursement 32
rates within five (5) business days of the request. 33
(c) A pharmacy services administrative organization may file a 34
complaint with the commissioner against a pharmacy benefits manager or other 35
healthcare payor for “take it or leave it" terms and conditions in a proposed 36 SB593
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contract, pharmacy provider manual, or contract amendment that violate 1
requirements of state law if the pharmacy benefits manager does not actively 2
respond, communicate, and adjust to the concerns of a pharmacy services 3
administrative organization, pharmacy, or pharmacist that the proposed 4
contract or provider manual terms do not follow state law. 5
(d) The information or data acquired during an examination or review 6
under subsections (a) and (b) of this section is: 7
(1) Considered proprietary and confidential under §§ 23 -61-8
107(a)(4) and 23-61-207; and 9
(2) Not subject to the Freedom of Information Act of 1967, § 25 -10
19-101 et seq. 11
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23-99-2006. Enforcement — Rules. 13
(a) The Insurance Commissioner shall promulgate rules to administer 14
and enforce this subchapter. 15
(b) After notice and opportunity for hearing, the commissioner may 16
revoke, place on probation, or suspend the registration of a pharmacy 17
services administrative organization. 18
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