Committee approves bill to limit data mining and conflicts by pharmacy benefit managers

The Public Health, Welfare and Labor Committee approved SB 617 after sponsor Sen. Jason Raper described it as a consumer‑protection measure aimed at pharmacy benefit managers and vertically integrated pharmacy entities.

Raper said the bill "promotes enhanced health privacy, prevents misuse of medical records, or health claims data for soliciting pharmacy services" and requires disclosure of conflicts of interest and patient consent for transfers. "These conflicts of interest and misuse of patient claims data can result in delayed care, interference of patient freedom of choice," Raper said.

John Vincent, identified as CEO of a state pharmacy association, gave examples of patients who go to a local pharmacy for a refill only to find the prescription was billed to a mail‑order pharmacy they never authorized. "Oftentimes... they're misusing that prior authorization process to basically trick a physician or a nurse into sending a request or a prescription to their mail or pharmacy that the patient never intended to go there," Vincent testified.

A committee amendment removing a hospital reference was adopted by voice vote. No audience opposition was recorded; the committee approved the bill on a voice vote.

Supporters said the measure will protect patient privacy and choice. The bill covers licensed pharmacies, their employees and affiliated companies holding pharmacy permits and creates prohibited practices for prescription solicitation and transfers without a pharmacist–patient relationship. Proponents indicated the Arkansas legislative audit identified undisclosed affiliations involving PBMs and mail‑order/retail chains that informed policymakers’ concerns.

The committee’s passage advances SB 617 to the next legislative step; the enacted language and fiscal implications were not discussed in detail during the committee record.