All Roll Calls
Yes: 129 • No: 0
ArkansasHB16202025 Regular SessionHouse
TO AMEND THE LAW CONCERNING PHARMACY BENEFITS MANAGERS; AND TO REGULATE PROCESSING AND PAYMENT OF PHARMACY CLAIMS.
Sponsored By: Zack Gramlich (Republican), Kim Hammer (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Protection against pharmacy benefit manager retaliation
Pharmacy benefits managers cannot punish a person, pharmacy, or provider for exercising a legal right to bring a case. This protection applies to rights under federal or state law that are not already covered by the clean-claim section.
Faster payments and late fees for pharmacies
Beginning January 1, 2026, pharmacy benefits managers must pay clean electronic claims 7–14 days after receipt and other clean claims within 30 days. A clean claim has no defects or needed corrections. Electronic claims count as received when transferred. Paper claims count as received on the fifth day after the earlier postmark or timestamp. Managers must report defects within 10 days for electronic claims or 15 days for other claims. After receiving more information, managers have 10 days to identify remaining or new defects. They cannot raise defects they could have found in the original claim. Missing a payment or defect-notice deadline makes the claim clean and payable under these rules. Late payments to contracted pharmacies or pharmacists carry a 12% monthly penalty, from the day after payment was due until proper payment. The Insurance Commissioner can excuse penalties for unexpected events, such as natural disasters, but not cybersecurity or data-security delays involving the manager or health payor. Network pharmacies can request electronic transfers for clean electronic claims; a request earlier in the same contract year counts. Managers may also send payment details electronically. Payment counts as made when transferred electronically or handed to the Postal Service or a common carrier.
Medicaid pharmacy audits gain stronger protections
Arkansas Medicaid must follow the state's Pharmacy Audit Bill of Rights when auditing pharmacy claims. Vendors and contractors hired to conduct those audits must follow the same protections for pharmacies and pharmacists. The law defines audits broadly, including financial, performance, and computer-system reviews. It also covers prescription checks after point-of-sale processing and audits after dispensing but before payment.
Drugmakers face new coupon payment duties
Drugmakers using outside companies to process prescription coupons must hold an active wholesale distributor permit. They must remain in good standing with the Arkansas State Board of Pharmacy and ensure processors follow pharmacy payment rules. If a processor leaves a clean-claim payment complaint unresolved, the Board must require the drugmaker to pay 12% monthly interest. The complaint deadline is 14 days after receipt for electronic claims and 30 days for other claims. Interest goes to the affected pharmacy or pharmacist—not the patient—from the day after payment was due until proper payment.
More pharmacy managers covered, clearer contract rules
The law covers more businesses as pharmacy benefits managers, including claims, drug, and device services for health benefit plans. Certain coupon and discount-card processors, plus partly or wholly owned or controlled subsidiaries, are included. Exclusions cover Arkansas-licensed health facilities and professionals, selection or performance advisers, and fee-for-service Medicaid-only processors in that role. Discount-card exclusions cover in-house pharmacy cards and arrangements where patients pay the full amount and pharmacies contract directly with the card service. Provider manuals describe operating rules, but major contract changes must appear in the contract or an addendum—not only the manual.
Sponsors & Cosponsors
Sponsors
Zack Gramlich
Republican • House
Kim Hammer
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/17/2025
Senate Vote - Monday, March 17, 2025 4:04:35 PM
Yes: 34 • No: 0
House vote • 3/6/2025
House Vote - Thursday, March 6, 2025 2:22:40 PM
Yes: 95 • No: 0
Actions Timeline
Notification that HB1620 is now Act 350
3/20/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
3/18/2025HouseTO BE ENROLLED
3/17/2025HouseReturned from the Senate as passed.
3/17/2025HouseReturned to the House as passed.
3/17/2025SenateRead the third time and passed.
3/17/2025SenateReturned by the Committee, with the recommendation that it Do Pass
3/13/2025SenateRead first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE
3/6/2025SenateReceived from the House.
3/6/2025SenateRead the third time and passed and ordered transmitted to the Senate.
3/6/2025HouseReturned by the Committee Do Pass
3/5/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE
2/27/2025HouseFiled
2/27/2025House
Bill Text
HB1620 - Introduced
2/27/2025
Act Version
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