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  • Robert Alongi

Senator Tom Butler Introduces PBM Regulation Bill

Dear Pharmacists,

On Tuesday, Senator Tom Butler introduced bill SB 227 that would further regulate pharmacy benefits managers (PBMs). The bill would protect patients from PBM conflicts of interest, protect local independent pharmacies from anticompetitive PBM practices, and create transparency between PBMs and payers.

The following are what PBMs would be prohibited to do under the regulations proposed per Alabama Retail's website:

  • reimbursing pharmacies at an amount less than the PBM reimburses their affiliate;

  • conducting “spread pricing”;

  • requiring an individual covered by the PBM to purchase drugs at a PBM affiliate or through mail-order;

  • offering or implementing plans that increase costs to covered individuals if they choose not to use mail order or a PBM affiliate;

  • prohibiting or limiting the customer choice of pharmacy if the pharmacy has agreed to and met the plan terms

For more information on the specific details of the bill, please click on this link.

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