SB475

Senate Bill 475 establishes the Pharmacy Services Administrative Organization (PSAO) Act to regulate entities that contract with pharmacies to handle administrative duties, such as claims, audits, and network access, on behalf of third-party payers. The bill mandates that all PSAOs operating in Arkansas obtain a license from the State Insurance Commissioner. It sets forth specific disclosure requirements, requiring PSAOs to inform both pharmacies and third-party payers about any ownership or control by parent companies involved in the manufacturing or distribution of drugs. The legislation prohibits PSAOs from forcing pharmacies to exclusively purchase drugs from their own affiliated entities. It also requires PSAOs to facilitate clear and timely communication regarding appeals between pharmacies and pharmacy benefits managers (PBMs) or third-party payers. Finally, the bill grants the Insurance Commissioner the authority to audit PSAOs, enforce compliance, and impose penalties or license revocations for violations.