On Apr. 18, ARK LEG reported bill establishing organization regulations
ARK LEG enacted bill SB 475 on pharmacy services administrative organizations.
Amends ARK INS 23-3-99 by adding new subchapter relating to the organizations.
Bill Provisions
Requires any person or organization operating as pharmacy services administrative organization for health benefit plans to obtain a license from Insurance Commissioner.
Commissioner shall prescribe the application for license to operate as a pharmacy services administrative organization and may charge application fees and renewal fees
Does not require third-party payer to enter contract with administrative organization.
Contracts with pharmacies shall include provision that requires providing copy of contract, amendment, payment schedule, or reimbursement rates within 3 days.
Shall disclose to Insurance Department extent of any ownership or control by company that provides pharmacy services, prescription drug services, or manufacturing services
Must notify department in writing within 5 days of any material change in ownership.
An organization shall not require the pharmacy purchase any drugs or any medical devices solely from the entity in which the organization has an ownership interest in.
In event of dispute between pharmacy and PBM or third-party payer, the organization shall ensure and facilitate timely communication from the pharmacy to other parties.
Insurance commissioner shall enforce the subchapter, may examine or audit the books and records of organization, may impose civil penalties for violations by organization.
Legislative History
On Mar. 17, 2025, bill was introduced in Senate; on Apr. 7, 2025, bill passed Senate.
On Apr. 7, 2025, bill was introduced in House; on Apr. 14, 2025, bill passed House.
On Apr. 17, 2025, bill was signed into law by the governor and assigned Act 773.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Ins
Reference
PR, Act 773, Bill SB475, 4/18/2025; Citation: ARK INS 23-3-99;
