All Roll Calls
Yes: 586 • No: 49
AlabamaSB2522025 Regular SessionSenateWALLET
Pharmacy Benefits Managers; providing a prescription reimbursement rate for independent pharmacies and regulating other practices
Sponsored By: William M. Beasley (Democratic)
Enacted
Insurance
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 5 benefits, 0 costs, 3 mixed.
Prescription payment caps and clearer prices
For covered prescriptions, pharmacy benefit managers cannot require payments above the lower of your plan’s cost share or cash price. Pharmacists can tell you about drug costs, pharmacy payments, and alternative drugs without being blocked or punished. The law sets no fixed dollar cap or guaranteed savings.
Minimum payments protect independent pharmacies
Beginning October 1, 2025, independent pharmacies receive at least the Alabama Medicaid reimbursement rate set on the law’s enactment date. Pharmacy benefit managers cannot reduce that payment through fees or adjustments, or shift dispensing costs to patients through higher cost sharing. They cannot reject a claim just because another in-network pharmacy has the drug. If another in-network pharmacy fills it, the manager owes the independent pharmacy a surcharge equal to its required reimbursement. Public employee plans are exempt if they prove to the Insurance Commissioner that total plan-year payments to independent pharmacies exceed the Medicaid-rate calculation.
Stronger protections for your pharmacy choice
Pharmacy benefit managers cannot force mail-order or affiliated pharmacy use, block qualifying in-network choices, or use financial rewards or penalties to steer patients. They cannot use claims data to market those pharmacies, except as needed to run the plan. These restrictions have an exception for practices required by the manager’s health-plan contract. Lower-cost option notices must use Commissioner-approved wording and say switching is optional. Managers may allow delivery when safety and quality are shown, managers and insurers pay no fee, and patients learn their delivery charges.
Fairer network access for local pharmacies
Pharmacy benefit managers cannot deny network entry to pharmacies or pharmacists that accept and meet contract terms. Qualifying independent pharmacies keep their minimum-payment protection despite conflicting contract terms. Credentialing cannot exceed state licensing standards, though managers may set minimum network requirements. Managers cannot charge enrollment, participation, credentialing, ownership-change, claims, or discount-card claim fees; audit fees remain subject to pharmacy audit law. Managers also cannot change payments or impose restrictions or charges because a provider uses the federal 340B drug discount program, though claims may require a 340B marker.
Health plans receive rebates and pricing reports
Pharmacy benefit managers and affiliates must pass 100% of manufacturer rebates they receive, directly or indirectly, to health-plan clients. Clients can instead direct rebates to patients’ purchases at checkout or allow part to cover administrative fees. Managers cannot charge plans more than they pay pharmacies through spread pricing unless the plan requires it. When required, managers must report that price difference annually to Alabama’s Insurance Commissioner. These rules do not guarantee lower copays or premiums.
Pharmacies can refuse below-cost prescriptions
Pharmacies can refuse to fill a prescription or send patients elsewhere when payment falls below their dispensing cost. Pharmacy benefit managers cannot punish that choice through contract cancellation, nonrenewal, penalties, or breach-of-contract lawsuits. Managers also cannot threaten or retaliate against pharmacies or pharmacists for using rights under this law or pharmacy audit law. Patients may need to use another pharmacy when a pharmacy declines to fill their prescription.
Pharmacy complaints get enforcement and fees
Alabama’s Insurance Commissioner must enforce the law, adopt rules, and impose civil penalties of at least $1,000 per violation. The Commissioner may audit pharmacy benefit managers, including annually, hire outside examiners, and recover examination costs from managers. Pharmacies and pharmacists may pay up to $100 to file a pharmacy-audit-law complaint. The Commissioner may waive that fee, and the manager or affiliate must repay it if the violation is proven.
Broader pharmacy oversight, but employer-plan exclusions
The law extends oversight to certain ownership-linked affiliates, prescription discount-program administrators, and nonprofit agricultural organizations offering health plans. It also defines independent pharmacies, rebates, spread pricing, and patient steering. The specified chapter rules exclude administration of self-funded plans governed by federal ERISA law, including prescription benefits. Federal law also overrides conflicting state requirements, while nonconflicting rules remain in force. The act takes effect upon enactment, except the independent-pharmacy payment protections begin October 1, 2025.
Sponsors & Cosponsors
Sponsor
William M. Beasley
Democratic • Senate
Cosponsors
Andrew Jones
Republican • Senate
Bobby D. Singleton
Democratic • Senate
Chris Elliott
Republican • Senate
Clyde Chambliss
Republican • Senate
Dan Roberts
Republican • Senate
David Sessions
Republican • Senate
Donnie Chesteen
Republican • Senate
Garlan Gudger
Republican • Senate
Gerald H. Allen
Republican • Senate
Jack W. Williams
Republican • Senate
Jay Hovey
Republican • Senate
Josh Carnley
Republican • Senate
Keith Kelley
Republican • Senate
Kirk Hatcher
Democratic • Senate
Lance Bell
Republican • Senate
Larry Stutts
Republican • Senate
Linda Coleman-Madison
Democratic • Senate
Merika Coleman
Democratic • Senate
Randy Price
Republican • Senate
Robert Stewart
Democratic • Senate
Rodger M. Smitherman
Democratic • Senate
Sam Givhan
Republican • Senate
Shay Shelnutt
Republican • Senate
Steve Livingston
Republican • Senate
Tim Melson
Republican • Senate
Tom Butler
Republican • Senate
Vivian Davis Figures
Democratic • Senate
Will Barfoot
Republican • Senate
Roll Call Votes
Senate vote • 4/8/2025
Gudger Concur In and Adopt - Adopted Roll Call 558
Yes: 33 • No: 0
House vote • 4/8/2025
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 648
Yes: 102 • No: 0
House vote • 4/8/2025
Motion to Adopt - Adopted Roll Call 647
Yes: 103 • No: 0
House vote • 4/8/2025
Motion to Adopt - Adopted Roll Call 646
Yes: 103 • No: 0
House vote • 4/8/2025
Third Reading in Second House
Yes: 103 • No: 0
Senate vote • 3/20/2025
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 421
Yes: 33 • No: 0 • Other: 1
Senate vote • 3/20/2025
Gudger motion to Adopt - Adopted Roll Call 420
Yes: 31 • No: 0 • Other: 1
Senate vote • 3/20/2025
Elliott motion to Adopt - Lost Roll Call 419
Yes: 10 • No: 21 • Other: 1
Senate vote • 3/20/2025
Stutts motion to Adopt - Lost Roll Call 418
Yes: 5 • No: 27 • Other: 1
Senate vote • 3/20/2025
Beasley motion to Adopt - Adopted Roll Call 417
Yes: 31 • No: 1 • Other: 1
Senate vote • 3/20/2025
Third Reading in House of Origin
Yes: 32 • No: 0 • Other: 1
Actions Timeline
Enacted
4/15/2025SenateReady to Enroll
4/9/2025SenateEnrolled
4/9/2025SenateDelivered to Governor
4/9/2025SenateSignature Requested
4/9/2025HouseThird Reading in Second House
4/8/2025HouseInsurance Engrossed Substitute Offered
4/8/2025HouseMotion to Adopt - Adopted Roll Call 646
4/8/2025HouseLovvorn 1st Amendment Offered
4/8/2025HouseMotion to Adopt - Adopted Roll Call 647
4/8/2025HouseMotion to Read a Third Time and Pass as Amended - Adopted Roll Call 648
4/8/2025HouseGudger Concur In and Adopt - Adopted Roll Call 558
4/8/2025SenateRead for the Second Time and placed on the Calendar
4/3/2025HouseInsurance 1st Amendment
4/2/2025HouseReported Out of Committee Second House
4/2/2025HouseThird Reading in House of Origin
3/20/2025SenateBanking and Insurance 1st Amendment Offered
3/20/2025SenateBeasley motion to Adopt - Adopted Roll Call 417
3/20/2025SenateStutts 1st Amendment Offered
3/20/2025SenateStutts motion to Adopt - Lost Roll Call 418
3/20/2025SenateElliott 1st Amendment Offered
3/20/2025SenateBeasley motion to Table - Lost Voice Vote
3/20/2025SenateElliott motion to Adopt - Lost Roll Call 419
3/20/2025SenateGudger 1st Amendment Offered
3/20/2025SenateGudger motion to Adopt - Adopted Roll Call 420
3/20/2025Senate
Bill Text
As Introduced
Engrossed
Enrolled
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