All Roll Calls
Yes: 122 • No: 7
ArkansasSB5442025 Regular SessionSenate
TO AMEND THE ARKANSAS PHARMACY BENEFITS MANAGER LICENSURE ACT.
Sponsored By: Jimmy Gazaway (Republican), Mark Johnson (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Pharmacies recover underpayments without charging patients
For an underpayment violation, the Arkansas Insurance Commissioner must require the pharmacy benefits manager to repay the affected pharmacy or pharmacist. The payment includes the full underpayment plus interest at 12% per month. Interest is based on the days from claim adjudication until the violation is resolved. Underpayment violations include breaches of fair-pay requirements and required drug-pricing processes. Pharmacies and pharmacists cannot charge patients these underpayments or related interest through copays or other out-of-pocket charges.
Clearer network choices for Arkansas pharmacies
Pharmacy benefits managers must disclose each network’s claims bank identification, group, and processor control numbers, including each unique combination. They must provide these on request and list them in new, renewed, amended, and opt-out contracts; Medicare arrangements are included. Opt-out contracts must give pharmacy groups, pharmacies, or pharmacists at least 60 days’ notice by both email and fax. Recipients must be able to state whether they will leave or stay in the network. Without a reply within 30 days after the first notice is received, the manager must send certified-mail notice.
Stronger contract protections for Arkansas pharmacies
Pharmacy benefits managers cannot offer take-it-or-leave-it terms that break Arkansas law; lawful terms remain allowed. They must respond, communicate, and adjust when pharmacy groups, pharmacies, or pharmacists raise concerns about unlawful contract or provider-manual terms. This covers both proposed and existing terms. National pharmacy contracts must include a separate Arkansas contract or amendment that clearly follows Arkansas law.
Stronger enforcement protects Arkansas pharmacies
After notice and a chance for a hearing, the Insurance Commissioner may fine pharmacy benefits managers up to $5,000 per violation. Grounds include failures to follow Maximum Allowable Cost list processes, use required national average drug acquisition costs, or meet other requirements. The commissioner may also suspend, revoke, or place a manager’s license or specific registered claims network on probation. Probation can include restrictions or notices to state-funded plans, and required rules must cover fines and license or network sanctions. A pattern of more than two violations can trigger a bidding ban of up to three years for new business with plans or programs directly or indirectly funded by state appropriations that provide pharmacist services to Arkansas residents or workers.
Sponsors & Cosponsors
Sponsors
Jimmy Gazaway
Republican • House
Mark Johnson
Republican • Senate
Cosponsors
Kim Hammer
Republican • Senate
Robin Lundstrum
Republican • House
Roll Call Votes
House vote • 4/14/2025
House Vote - Monday, April 14, 2025 3:35:18 PM
Yes: 96 • No: 1
Senate vote • 4/2/2025
Senate Vote - Wednesday, April 2, 2025 4:41:36 PM
Yes: 26 • No: 6 • Other: 1
Actions Timeline
Notification that SB544 is now Act 775
4/18/2025SenateDELIVERED TO GOVERNOR.
4/15/2025SenateReported correctly enrolled and ordered delivered to the Governor.
4/15/2025SenateORDERED ENROLLED
4/14/2025SenateReturned from the House as passed.
4/14/2025SenateReturned to the Senate as passed.
4/14/2025HouseRead the third time and passed and ordered transmitted to the Senate.
4/14/2025HouseReturned by the Committee Do Pass
4/9/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE
4/2/2025HouseRECEIVED FROM THE SENATE
4/2/2025HouseOrdered immediately transmitted to the House.
4/2/2025SenateRead the third time and passed.
4/2/2025SenateReturned by the Committee, with the recommendation that it Do Pass
4/1/2025SenateRead first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE
3/20/2025SenateFiled
3/20/2025Senate
Bill Text
SB544 - Introduced
3/20/2025
Act Version
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