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SB 3260

AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- DECEPTIVE TRADE PRACTICES

2026 Regular Session Introduced by Jake Bissaillon and 4 co-sponsors

The bill bans PBMs from hidden price schemes and manipulative practices, requiring transparent pricing, fair patient choices, and guardrails on data use and inducements.

05/21/2026 Committee recommended measure be held for further study
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Bill Summary · SB 3260

Summary of Bill SB 3260 (2026) – Rhode Island

Title

AN ACT RELATING TO COMMERCIAL LAW — GENERAL REGULATORY PROVISIONS — DECEPTIVE TRADE PRACTICES

Purpose and intent

  • The bill adds a new provision (6-13.1-31) to Rhode Island’s Deceptive Trade Practices law to address and prohibit specific practices by Pharmacy Benefits Managers (PBMs).
  • It treats certain PBM practices as unfair or deceptive trade practices and unfair competition, with the goal of protecting enrollees and preserving transparent, fair drug pricing and access.

Key provisions and changes

Definitions (section 6-13.1-31(a))

  • Establishes defined terms relevant to PBMs:
    • Effective rate pricing: pricing reductions reconciled or applied in a way that results in reimbursement below the contracted rate and are not disclosed or agreed to by the pharmacist/pharmacy.
    • Enrollee: State residents covered by a health plan (with exclusions for Medicare Part D, federal programs like FEHB/TRICARE/VA).
    • Inducement: Financial incentives (e.g., premium/deductible/copayment changes) intended to influence a patient’s choice or use of healthcare items/services.
    • MAC price: Maximum allowable cost price used by PBMs for drug reimbursements.
    • Patient steering: Any PBM communication to steer a patient to a specific pharmacy.
    • PBM: Entity administering prescription drug benefits for residents of Rhode Island.
    • Spread pricing: When a PBM bills a health plan a different price than what it pays the pharmacist/pharmacy.

Prohibited acts by PBMs (section 6-13.1-31(b))

PBMs would be deemed to commit unfair/deceptive trade practices or unfair competition if they commit any of the following:
1. Engage in spread pricing or effective rate pricing.
2. Directly or indirectly steer patients to pharmacies in which the PBM or related entities have ownership or control.
3. Penalize enrollees or offer inducements to use a particular pharmacy where there is PBM or affiliated ownership/control.
4. Require pharmacists/pharmacies to purchase drugs from a specific wholesaler.
5. Deflate or fail to adjust MAC prices when the wholesaler offering the MAC price doesn’t sell the drug.
6. Fail to honor MAC or equivalent price requirements as specified in other Rhode Island statutes/regulations.
7. Impose aggressive early-refill restrictions on maintenance medications (minimum 7 days of remaining supply allowed, for prescriptions with at least 30 days’ supply). Medicaid-specific exceptions may apply; this does not apply to Schedule II-V controlled substances.
8. Delay or fail to honor step-therapy documentation when clinically justified (drug on formulary and prior step therapy tried with justification from provider).
9. Exploit enrollee prescription data for monetary gain or to exert economic power over pharmacists (e.g., data mining to direct business toward PBM-owned/controlled pharmacies).
10. Sell/use enrollee prescription information for marketing, referrals, or other actions to gain power or control over pharmacists or interfere with patient choice.
11. Repackage drugs to extract higher markups if a PBM owns a mail-order pharmacy, unless the patient is informed in writing that repackaged drugs are more expensive.
12. Operate in Rhode Island without proper registration/licensure or good standing with state regulators; each day of operation without registration/licensure constitutes a separate violation.

Additional clarifications (section 6-13.1-31(c))

  • Violations are typically counted per affected consumer transaction.
  • Communications about costs that are truthful and non-misleading, and information that helps consumers find the lowest-cost drugs, are not prohibited.
  • Network-change notices to consumers are not prohibited.
  • Protected health information can be used for health care operations under HIPAA; federal law takes precedence where applicable.
  • The act does not limit other remedies available to the Attorney General or other parts of Rhode Island law (e.g., injunctive relief, restitution).

Effective date

  • The act takes effect upon passage (immediate implementation upon signing).

Who is affected

  • Pharmacy Benefits Managers operating in Rhode Island that administer or manage prescription drug benefits for RI health plans.
  • Enrollees/patients covered by RI health plans.
  • Pharmacists and pharmacies participating in PBM networks, especially related to MAC pricing, network participation, and data use.
  • Health plans contracting with PBMs within the state.

Procedural and timeline aspects

  • Introduced in May 2026 and referred to the Senate Health & Human Services committee.
  • Enactment requires passage and signature; effective upon passage (no separate transition period specified).

Potential impact (summary)

  • Aims to increase pricing transparency and protect enrollees from disputed or hidden price adjustments (e.g., effective rate pricing, spread pricing).
  • Curtails PBM practices that can steer patients or restrict pharmacy choice, or that leverage data to favor PBM-owned or controlled pharmacies.
  • Seeks to curb inducements or penalties tied to pharmacy selection and to ensure reliable MAC pricing and formulary considerations.
  • Provides the Rhode Island AG with additional tools to pursue enforcement remedies for deceptive PBM practices.

If you’d like, I can compare these provisions to existing Rhode Island deceptive trade practices statutes or to similar PBM-related laws in other states.

Compiled from official sources — confirm details with the bill’s official record.

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