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Arkansas Senate Bill SB593

Arkansas 2025 Regular Session

Arkansas Senate Bill SB593 Compare Versions

Only one version of the bill is available at this time.
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11 Stricken language would be deleted from and underlined language would be added to present law.
22 *ANS443* 03/31/2025 4:16:26 PM ANS443
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 SENATE BILL 593 3
66 4
77 By: Senator J. Boyd 5
88 By: Representative Achor 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO AMEND THE ARKANSAS PHARMACY BENEFITS 9
1212 MANAGER LICENSURE ACT; TO CREATE THE PHARMACY 10
1313 SERVICES ADMINISTRATIVE ORGANIZATION ACT; AND FOR 11
1414 OTHER PURPOSES. 12
1515 13
1616 14
1717 Subtitle 15
1818 TO AMEND THE ARKANSAS PHARMACY BENEFITS 16
1919 MANAGER LICENSURE ACT; AND TO CREATE THE 17
2020 PHARMACY SERVICES ADMINISTRATIVE 18
2121 ORGANIZATION ACT. 19
2222 20
2323 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21
2424 22
2525 SECTION 1. Arkansas Code § 23 -92-503(12), concerning the definition of 23
2626 "pharmacy services administrative organization" used under the Arkansas 24
2727 Pharmacy Benefits Manager Licensure Act, is amended to read as follows: 25
2828 (12) "Pharmacy services administrative organization" means an 26
2929 organization that helps community pharmacies and pharmacy benefits managers 27
3030 or third-party payers achieve administrative and economic efficiencies, 28
3131 including contracting , reimbursement, and payment efficiencies; 29
3232 30
3333 SECTION 2. Arkansas Code § 23 -92-503, concerning definitions used 31
3434 under the Arkansas Pharmacy Benefits Manager Licensure Act, is amended to add 32
3535 additional subdivisions to read as follows: 33
3636 (16)(A) "Pharmacy benefits manager national contract to 34
3737 pharmacies" means a standardized agreement entered into by a pharmacy 35
3838 benefits manager and a network of pharmacies across the United States in 36 SB593
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4141 which a pharmacy is, either directly or indirectly, passed through a pharmacy 1
4242 services administrative organization to agree to certain pricing terms and 2
4343 conditions if that pharmacy is included within a pharmacy benefits manager 3
4444 network. 4
4545 (B) "Pharmacy benefits manager national contract to 5
4646 pharmacies" includes a nationwide network of pharmacies that have entered 6
4747 into a contract for national reimbursement rates, terms, and conditions that 7
4848 are not Arkansas-specific with a pharmacy benefits manager to provide 8
4949 pharmacist services, including without limitation dispensing medications to a 9
5050 patient within the pharmacy benefits manager network; and 10
5151 (17) "Pharmacy services administrative organization contracting" 11
5252 means an agreement between a pharmacy or pharmacist with a pharmacy benefits 12
5353 manager and other healthcare payors for a health benefit plan. 13
5454 14
5555 SECTION 3. Arkansas Code Title 23, Chapter 99, is amended to add an 15
5656 additional subchapter to read as follows: 16
5757 Subchapter 20 — Pharmacy Services Administrative Organization Act 17
5858 18
5959 23-99-2001. Title. 19
6060 This subchapter shall be known and may be cited as the "Pharmacy 20
6161 Services Administrative Organization Act". 21
6262 22
6363 23-99-2002. Definitions. 23
6464 As used in this subchapter: 24
6565 (1) "Health benefit plan" means the same as defined in § 23 -92-25
6666 503; 26
6767 (2) "Healthcare payor" means the same as defined in § 23 -92-503; 27
6868 (3) "Pharmacy benefits manager" means the same as defined in § 28
6969 23-92-503; 29
7070 (4) "Pharmacy benefits manager national contract to pharmacies” 30
7171 means the same as defined in § 23 -92-503; 31
7272 (5) "Pharmacy services administrative organization" means the 32
7373 same as defined in § 23 -92-503; 33
7474 (6) "Pharmacy services administrative organization contracting" 34
7575 means the same as defined in § 23-92-503; and 35
7676 (7) "Pharmacy services administrative organization -pharmacy 36 SB593
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7979 contract" means a contractual agreement between a pharmacy services 1
8080 administrative organization and a pharmacy by which a pharmacy services 2
8181 administrative organization agrees to negotiate with a pharmacy benefits 3
8282 manager and other healthcare payors for health benefit plans on behalf of a 4
8383 pharmacy or pharmacist and to provide other services as stated in the 5
8484 pharmacy services administrative organization -pharmacy contract. 6
8585 7
8686 23-99-2003. Registration requirements — Application — Fees. 8
8787 (a)(1) A pharmacy services administrative organization shall not 9
8888 provide any service in Arkansas without being registered with the State 10
8989 Insurance Department under this subchapter. 11
9090 (2)(A) An initial registration fee for a pharmacy services 12
9191 administrative organization is two hundred fifty dollars ($250). 13
9292 (B) The Insurance Commissioner may charge registration 14
9393 renewal fees as established by rule. 15
9494 (b)(1) The commissioner shall prescribe the application for 16
9595 registration to operate in Arkansas as a pharmacy services administrative 17
9696 organization. 18
9797 (2) An application for registration as a pharmacy services 19
9898 administrative organization shall include: 20
9999 (A) The full business name of the pharmacy services 21
100100 administrative organization; 22
101101 (B) The name, business address, phone number, website, and 23
102102 email address for the primary contact; 24
103103 (C) The name, business address, phone number, website, and 25
104104 email address for the contact designated to handle grievances; and 26
105105 (D) The employer identification number, also known as the 27
106106 federal employer identification number or the federal tax identification 28
107107 number. 29
108108 (3) The commissioner may charge application fees as established 30
109109 by rule. 31
110110 32
111111 23-99-2004. Notice and disclosure requirements. 33
112112 (a)(1) Beginning on or before March 1, 2026, a pharmacy services 34
113113 administrative organization shall file with the Insurance Commissioner an 35
114114 annual report for the preceding calendar year. 36 SB593
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117117 (2) A report may be requested by the commissioner on renewal of 1
118118 the registration of the pharmacy services administrative organization if the 2
119119 information is needed. 3
120120 (b) The annual report required under subsection (a) of this section 4
121121 shall: 5
122122 (1) Include an approximate number of pharmacies that the 6
123123 pharmacy services administrative organization has a pharmacy services 7
124124 administrative organization -pharmacy contract with within the state; and 8
125125 (2) Include the names of: 9
126126 (A) The pharmacy benefits managers with which the pharmacy 10
127127 services administrative organization has an agreement; and 11
128128 (B) The pharmacy benefits managers with which the pharmacy 12
129129 services administrative organization does not have an agreement. 13
130130 (c) A pharmacy services administrative organization shall annually 14
131131 disclose to the State Insurance Department and to pharmacists who or 15
132132 pharmacies that have an active pharmacy services administrative organization -16
133133 pharmacy contract the extent of any ownership or control of the pharmacy 17
134134 services administrative organization by a parent company, subsidiary, or 18
135135 other organization that: 19
136136 (1) Manufactures, sells, or distributes prescription drugs and 20
137137 is licensed, permitted, or registered as a wholesale distributor in this 21
138138 state with the Arkansas State Board of Pharmacy; or 22
139139 (2) Sells prescription drugs and medicines at retail and is 23
140140 licensed, permitted, or registered as a retail pharmacy with the board. 24
141141 (d) A pharmacy services administrative organization shall notify the 25
142142 department in writing within five (5) business days of any material change in 26
143143 its ownership or control relating to any company, subsidiary, or other 27
144144 organization described in subsection (c) of this section. 28
145145 29
146146 23-99-2005. Pharmacy services administrative organization contracting 30
147147 — Requirements. 31
148148 (a)(1) A pharmacy benefits manager shall offer and include in any 32
149149 existing pharmacy services administrative organization a separate Arkansas -33
150150 based amendment that complies with the Arkansas Pharmacy Benefits Manager 34
151151 Licensure Act, § 23-92-501 et seq., and other state laws on or before January 35
152152 1, 2026. 36 SB593
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155155 (2) A contract provision that states that the pharmacy benefits 1
156156 manager agrees to comply with applicable laws does not comply with the 2
157157 requirement in subdivision (a)(1) of this section. 3
158158 (3) The Insurance Commissioner may review the pharmacy services 4
159159 administrative organization agreements that are executed between a pharmacy 5
160160 and a pharmacy benefits manager if the commissioner has an active 6
161161 investigation of state laws being violated by the pharmacy benefits manager 7
162162 related to an executed agreement with a pharmacy services administrative 8
163163 organization. 9
164164 (b)(1)(A) A pharmacy services administrative organization -pharmacy 10
165165 contract shall include a provision that requires a pharmacy services 11
166166 administrative organization to provide to a pharmacy a copy of the pharmacy 12
167167 services administrative organization -pharmacy contract, amendment, payment 13
168168 schedule, or reimbursement rates within thirty (30) days of the receipt of a 14
169169 written request from a pharmacy or pharmacist after the execution of a 15
170170 pharmacy services administrative organization -pharmacy contract, or an 16
171171 amendment to a pharmacy services administrative organization -pharmacy 17
172172 contract, signed on behalf of the pharmacy if it is a new agreement, new 18
173173 network, or has a reduction in reimbursement rates compared to the previous 19
174174 agreement. 20
175175 (B) The pharmacy services administrative organization may 21
176176 respond to a written request from a pharmacy or a pharmacist under 22
177177 subdivision (b)(1)(A) of this section by making the pharmacy services 23
178178 administrative organization -pharmacy contract document or an amendment or 24
179179 update to the pharmacy services administrative organization -pharmacy contract 25
180180 document available through a pharmacy portal. 26
181181 (2) Upon written request from a pharmacy or pharmacist for an 27
182182 existing pharmacy services administrative organization -pharmacy contract, a 28
183183 pharmacy services administrative organization -pharmacy contract shall include 29
184184 a provision that requires a pharmacy services administrative organization to 30
185185 provide to a pharmacy a copy of the pharmacy services administrative 31
186186 organization-pharmacy contract, amendment, payment schedule, or reimbursement 32
187187 rates within five (5) business days of the request. 33
188188 (c) A pharmacy services administrative organization may file a 34
189189 complaint with the commissioner against a pharmacy benefits manager or other 35
190190 healthcare payor for “take it or leave it" terms and conditions in a proposed 36 SB593
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193193 contract, pharmacy provider manual, or contract amendment that violate 1
194194 requirements of state law if the pharmacy benefits manager does not actively 2
195195 respond, communicate, and adjust to the concerns of a pharmacy services 3
196196 administrative organization, pharmacy, or pharmacist that the proposed 4
197197 contract or provider manual terms do not follow state law. 5
198198 (d) The information or data acquired during an examination or review 6
199199 under subsections (a) and (b) of this section is: 7
200200 (1) Considered proprietary and confidential under §§ 23 -61-8
201201 107(a)(4) and 23-61-207; and 9
202202 (2) Not subject to the Freedom of Information Act of 1967, § 25 -10
203203 19-101 et seq. 11
204204 12
205205 23-99-2006. Enforcement — Rules. 13
206206 (a) The Insurance Commissioner shall promulgate rules to administer 14
207207 and enforce this subchapter. 15
208208 (b) After notice and opportunity for hearing, the commissioner may 16
209209 revoke, place on probation, or suspend the registration of a pharmacy 17
210210 services administrative organization. 18
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