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SB 99

Drug Insurance Benefits; impose more restrictions on pharmacy benefit managers

2025 Regular Session Introduced by Larry Stutts

SB 99 imposes restrictions on pharmacy benefit managers' practices affecting prescription drug pricing and patient access in Alabama insurance plans.

Read for the first time and referred to the Senate Committee on Banking and Insurance
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Bill Summary · SB 99

Legislative bill overview

SB 99 would impose additional regulatory restrictions on pharmacy benefit managers (PBMs) in Alabama, entities that manage prescription drug benefits for insurance plans. The bill specifically targets PBM practices that affect drug pricing, formulary design, and patient access to medications. The exact restrictions are not detailed in the available information, but the bill represents an effort to increase state-level oversight of PBM operations.

Why is this important

PBMs are intermediaries between insurers, pharmacies, and patients, and control which drugs are covered and at what cost. Concerns about PBM practices—including opaque pricing, formulary restrictions that limit drug choices, and pharmacy reimbursement rates—have grown significantly. Alabama action on this issue could affect prescription drug costs and accessibility for state residents, and may influence how insurance plans operate statewide.

Potential points of contention

  • PBM industry pushback: PBMs may argue that restrictions limit their ability to negotiate drug prices and control costs, potentially leading to higher premiums for consumers
  • Scope and enforceability: The specific restrictions matter greatly—overly broad restrictions could be difficult to enforce or create unintended consequences for drug availability
  • Federal versus state authority: Uncertainty exists about whether Alabama can regulate PBMs operating under federal ERISA-governed plans, creating potential legal challenges

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

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