HB1150
To Prohibit A Pharmacy Benefits Manager From Obtaining Certain Pharmacy Permits.
AI-Generated Summary
This bill, titled the "AN ACT TO PROHIBIT A PHARMACY BENEFITS MANAGER FROM OBTAINING CERTAIN PHARMACY PERMITS," aims to address perceived anticompetitive practices in the pharmacy market. The legislative findings suggest that pharmacy benefits managers (PBMs) have engaged in tactics that harm locally-owned pharmacies and increase drug prices. The bill prohibits PBMs, or entities managed by or with ownership interests in PBMs, from acquiring or holding permits for the retail sale of drugs or medicines. The Arkansas State Board of Pharmacy is mandated to revoke or not renew permits for entities violating this provision, with an effective date of January 1, 2026. Exceptions exist for limited use permits for rare or orphan drugs, and for certain pharmacy employers exclusively servicing their own employees. The bill also outlines a notification process for pharmacies and patients affected by these changes, requiring notice to be sent at least 90 days before the prohibition takes effect. The intent is to foster a more competitive market and reduce conflicts of interest within the pharmacy sector.
Potential Impact Analysis
Who Might Benefit?
This bill would primarily benefit independent and locally-operated pharmacies that are currently or could be disadvantaged by the business practices of pharmacy benefits managers. Patients may also benefit from increased competition, potentially leading to fairer drug prices and a wider selection of pharmacy providers. Additionally, entities that are not PBMs or their affiliates, and are currently operating retail pharmacies, would see reduced competition from PBM-owned or affiliated pharmacies.
Who Might Suffer?
Pharmacy benefits managers and any entities that are subsidiaries of, managed by, or have ownership interests in PBMs would be most directly and negatively impacted. These entities would be prohibited from obtaining or holding retail pharmacy permits in Arkansas, potentially requiring them to divest existing retail pharmacy operations or cease offering certain services within the state. This could also affect their business models and profitability within Arkansas's pharmacy market.