KansasSB 202025–2026 Regular SessionSenateWALLET

Enacting the Kansas consumer prescription protection and accountability act and providing for regulation and registration of pharmacy benefits managers.

Sponsored By: Committee on Financial Institutions and Insurance

Signed by Governor

house committee on insurancesenate committee on financial institutions and insurance

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 4 benefits, 2 costs, 1 mixed.

Pharmacies gain minimum payments and contract access

Pharmacy benefit managers must pay pharmacies at least the latest monthly National Average Drug Acquisition Cost, or wholesale acquisition cost when unavailable. They must add a dispensing fee equal to the greater of $10.50 or the fee under state rules. Managers cannot pay outside pharmacies less than their own pharmacies, and must charge health plans the same drug price they pay pharmacies. These payment rules exclude self-funded plans governed by the federal ERISA law. Managers must also give pharmacies contracts, amendments, payment schedules, and reimbursement rates within 10 calendar days after signing or changing them.

Patients and pharmacies gain fee protections

Pharmacy benefit managers cannot impose point-of-sale or retroactive fees, or earn revenue from pharmacies or patients for managing pharmacy benefits. They can still process plan-approved deductibles and copays. Rebates not used to lower a patient's cost sharing must go to the health plan. Insurers do not have to use rebates to lower patient costs. These rules exclude self-funded health plans governed by the federal ERISA law.

Pharmacies gain audit notice and response rights

The audit rules cover pharmacy-record reviews by managed care companies, third-party payers, pharmacy benefit managers, and entities acting for covered entities or health plans. Auditors must protect private health information and give at least 14 calendar days' written notice unless both parties agree otherwise. Pharmacies can request a delay within 72 hours after receiving notice, and must receive a record list before auditors leave. Preliminary reports are due within 60 calendar days after the on-site audit, pharmacies get at least 30 calendar days to respond, and final reports are due within 90 calendar days after the audit. Plan sponsors and the Kansas insurance commissioner can request audit reports, subject to confidentiality protections.

Pharmacies gain limits on audit recoveries

Audit recoveries must reflect actual financial harm; clerical errors generally cannot trigger repayment unless they caused overpayment. Auditors cannot project sampled errors across other claims unless federal law requires it. Clinical audits require pharmacist involvement and generally cover no more than 24 months and 250 prescriptions, with exceptions for legally required longer periods or indicated fraud, waste, abuse, or intentional wrongdoing. Recovery must wait until the appeal deadline passes or appeals end, but managers may withhold future payments for identified discrepancies over $25,000 while appeals are pending. Limits on reversing prior eligibility approvals do not apply to Medicare claims.

Drug benefit managers face state oversight

Pharmacy benefit managers operating in Kansas need a state license; an administrator registration does not replace it. The law covers insurers and other prescription-coverage entities, including managers of some self-funded and government plans, but excludes property, casualty, and workers' compensation insurers. Existing insurance-code exemptions do not override requirements that this act expressly applies. The insurance commissioner can examine managers when needed and require access to relevant records and staff. Managers must pay reasonable costs for hired examination professionals, and refusing to cooperate can lead to license suspension, denial, or nonrenewal.

Pharmacy auditors must register and pay fees

Pharmacy auditing entities must register with the Kansas insurance commissioner before operating in Kansas. The initial fee cannot exceed $500, annual renewal fees cannot exceed $250, and late-renewal penalties cannot exceed $250. Registrations expire each March 31 and must be renewed by that date. The commissioner can suspend registration until required renewal documents and payments arrive.

Drug benefit managers must disclose payments

Pharmacy benefit managers must report rebates, pharmacy-service payments, and differences between pharmacy payments and health-plan charges annually, or more often when requested. Quarterly reports cover drugs listed in National Average Drug Acquisition Cost data, including payments at least 10% above or below that benchmark. Managers must post those quarterly reports publicly for at least 24 months. Health plans and covered entities must also report credits, rebates, discounts, and other payments each year. Reports must be electronic and exclude personal protected health information; reports other than the quarterly drug reports generally remain confidential.

Sponsors & Cosponsors

Sponsor

  • Committee on Financial Institutions and Insurance

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 552 • No: 92

Senate vote • 4/23/2026

Yea: 32 Nay: 8

Yes: 32 • No: 8

Senate vote • 4/23/2026

Yea: 104 Nay: 17

Yes: 104 • No: 17

Senate vote • 4/23/2026

Yea: 100 Nay: 21

Yes: 100 • No: 21

Senate vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

Senate vote • 3/24/2026

Conference Committee Report was adopted

Yes: 32 • No: 8

House vote • 3/23/2026

Conference Committee Report was adopted

Yes: 104 • No: 17

House vote • 3/7/2025

Emergency Final Action - Passed as amended

Yes: 100 • No: 21

Senate vote • 2/19/2025

Final Action - Passed

Yes: 40 • No: 0

Actions Timeline

  1. Enrolled and presented to Governor on Friday, April 3, 2026

    4/9/2026Senate
  2. Approved by Governor on Thursday, April 9, 2026

    4/9/2026Senate
  3. Conference Committee Report was adopted; Yea 32, Nay 8

    3/24/2026Senate
  4. Conference committee report now available

    3/23/2026House
  5. Motion to suspend rule 1502 adopted

    3/23/2026House
  6. Substitute motion to not adopt and appoint a conference committee failed

    3/23/2026House
  7. Conference Committee Report was adopted; Yea 104, Nay 17, Absent 4

    3/23/2026House
  8. Motion to accede adopted; Rep. Bill Sutton, Rep. Brian Bergkamp and Rep. Cindy Neighbor appointed as conferees

    3/11/2025House
  9. Nonconcurred with amendments; Conference Committee requested; appointed Sen. Brenda Dietrich, Sen. Michael Fagg and Sen. Marci Francisco

    3/10/2025Senate
  10. Committee of the Whole - Committee Report be adopted

    3/7/2025House
  11. Committee of the Whole - Be passed as amended

    3/7/2025House
  12. Motion to advance to Emergency Final Action adopted

    3/7/2025House
  13. Emergency Final Action - Passed as amended; Yea 100, Nay 21, Absent 4

    3/7/2025House
  14. Committee Report recommending bill be passed as amended by House Committee on Insurance

    2/27/2025House
  15. Hearing: Wednesday, February 26, 2025, 3:30 PM — Room 218-N

    2/26/2025House
  16. Final Action - Passed; Yea 40, Nay 0

    2/19/2025Senate
  17. Received and Introduced

    2/19/2025House
  18. Referred to House Committee on Insurance

    2/19/2025House
  19. Committee of the Whole - Be passed

    2/18/2025Senate
  20. Committee Report recommending bill be passed by Senate Committee on Financial Institutions and Insurance

    2/3/2025Senate
  21. Hearing: Thursday, January 23, 2025, 9:30 AM — Room 546-S

    1/23/2025Senate
  22. Referred to Senate Committee on Financial Institutions and Insurance

    1/17/2025Senate
  23. Introduced

    1/16/2025Senate

Bill Text

  • As Amended by House Committee

  • As Introduced

  • Enrolled

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