This month the Massachusetts governor signed a law requiring the licensure of pharmacy benefit managers, Arkansas moved to ban them from owning pharmacies in the state, and Oklahoma sued CVS Caremark for reimbursing pharmacies below cost.
Massachusetts to license PBMs
Gov. Maura Healey (D-Mass.) signed into law S. 3012, legislation that creates a pharmacy benefits manager licensure program and establishes enforcement authority for the Office of the Insurance Commissioner and outlines terms for the examination of PBMs. Also addressed are terms for how PBMs may engage brokers. Massachusetts was previously one of the few remaining states without licensure or registration requirements.
Arkansas seeks to ban PBMs owning pharmacies
Arkansas State Rep. Jeremiah Moore (R) and State Sen. Kim Hammer (R) filed H.B. 1150, first-of-its-kind legislation that would prohibit PBMs from holding permits to own pharmacies in the state. By Jan. 1, 2026, existing permits would be revoked from any PBM with direct or indirect ownership in retail sales of drugs or medicines in the state. The initiative kicked off with a press conference convened by the Arkansas Pharmacist Association and attended by an impressive array of dignitaries, including Moore, Hammer, Attorney General Tim Griffin (R), Lieutenant Governor Leslie Rutledge (R), pharmacist and State Rep. Brandon Achor (R), and patient advocate Loretta Boesing. The press conference can be viewed here.
Oklahoma AG turns screws on CVS for below-cost reimbursement
Attorney General Gentner Drummond is suing CVS Caremark for repeated violations of state laws intended to protect pharmacies from below-cost reimbursement, taking the complaint to the Oklahoma Office of Administrative Hearings’ new PBM Administrative Court. The suit identifies 200 claims from 15 pharmacies that were reimbursed below cost. Pharmacies pursued these claims through the appeals procedure outlined in state law, but CVS violated multiple terms of the appeals process, including not providing NDCs of products available at the time that pharmacies could have purchased. The Office of the Attorney General has been charged with PBM oversight and compliance since November 2023.
