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Bill

Bill

HB 1150

RELATING TO TAX COLLECTIONS.

2025 Regular Session Introduced by Nadine Nakamura

House Bill 1150 bars Pharmacy Benefits Managers from owning pharmacy permits in Arkansas, aiming to boost patient access to medications and reduce conflicts of interest.

Reported from JHA (Stand. Com. Rep. No. 745) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
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Bill Summary · HB 1150

Summary of House Bill 1150: Relating to Tax Collections

Purpose of the Bill

House Bill 1150 (HB 1150) aims to prohibit Pharmacy Benefits Managers (PBMs) from obtaining certain pharmacy permits in Arkansas. The intent is to enhance patient access to prescription drugs and pharmacy services while minimizing conflicts of interest that may arise when PBMs own pharmacies.

Key Provisions

  1. Prohibition on Pharmacy Permits:

    • PBMs are barred from acquiring direct or indirect interests in permits for the retail sale of drugs in Arkansas.
    • The Arkansas State Board of Pharmacy is mandated to revoke or not renew permits for entities that violate this prohibition.
  2. Limited Use Permits:

    • The Board may issue limited use permits for rare, orphan, or limited distribution drugs that are otherwise unavailable to patients or pharmacies due to the prohibitions.
    • If a drug is deemed unavailable, the Board can convert a pharmacy's permit to a limited use permit for a minimum of 90 days.
  3. Assessment and Notification:

    • The Board will conduct an initial assessment of active retail pharmacy permits and notify those that may violate the new regulations at least 90 days before the effective date.
    • Pharmacies must inform patients and healthcare providers about the inability to dispense retail drugs at least 60 days prior to the prohibition taking effect.
  4. Implementation Timeline:

    • The Board must adopt a written policy to implement these provisions before the effective date of the bill.
    • The prohibition takes effect on January 1, 2026, with a sunset clause for certain provisions expiring on September 1, 2027.

Impact of the Bill

  • Pharmacy Networks: The bill may require the Employee Benefits Division (EBD) to restructure pharmacy networks and compliance measures, potentially leading to increased costs estimated between $600,000 and $1,000,000.
  • Patient Access: While the bill aims to improve patient access to medications, it may also disrupt existing pharmacy networks, requiring patients to switch pharmacies, which could limit access to certain medications, especially specialty drugs.
  • Operational Challenges: Pharmacies may face operational challenges in adapting to the new regulations, including the need to notify patients and healthcare providers about changes in service availability.

Legislative Status

  • HB 1150 was introduced on January 16, 2025, and has undergone several amendments and readings in both the House and Senate.
  • As of April 16, 2025, the bill has been enacted as Act 624 after passing through various legislative stages, including committee reviews and votes.

Conclusion

HB 1150 represents a significant shift in the regulatory landscape for pharmacy benefits managers in Arkansas, aiming to protect patient interests and enhance competition in the pharmacy market. The bill's implementation will require careful monitoring to assess its impact on pharmacy access and costs for patients.

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

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