Committee approves bill to sync pharmacy network rules and move pharmacy audit enforcement

The Senate Insurance & Commerce Committee on the floor passed House Bill 1804 after proponents said the measure aligns Arkansas with federal industry standards and relocates enforcement of pharmacy audit protections to the Arkansas Insurance Department.

Representative Brian Evans, sponsor of HB1804, told the committee the bill "is an effort to...synchronize the definition of health plans as defined in act 900 of 02/2015" and to define a "community pharmacy network adequacy program" to match federal standards. He said the change should "help lower cost for your constituents and be less burdensome...when it comes to filling their much needed prescriptions."

John Vincent of the Arkansas Pharmacists Association testified in support, saying the legislation organizes prior laws and enforcement into consistent language. Vincent noted several prior acts and litigation history, telling the committee that related provisions were "challenged by the PBMs all the way up to the US Supreme Court" and that the challenge was "unanimously upheld with an 8 0 vote in 02/2020." He also said the bill "moves the enforcement of the pharmacy audit bill of rights back into the Arkansas Insurance Department" because the department licenses PBMs and should oversee audits.

Representative Evans closed for the bill; a motion to pass was seconded and the chair called the vote. Committee members responded "Aye," and the chair said, "Your bill has passed." The transcript did not record a roll-call tally for the vote.

The bill broadens enforcement reach to additional plans, including employer and certain university or state-funded plans, and seeks to reduce burdens on community pharmacies by codifying network standards and enforcement under the insurance regulator.