LITTLE ROCK, Ark. – The Arkansas Legislative Council voted on Friday to make an emergency rule on pharmacy benefit managers permanent, reversing a Thursday decision by its rules subcommittee.
On Thursday the subcommittee voted against the rule, citing various factors, including possible price hikes and questions about rate-setting. Proponents of the rule cited the impact of pharmacy benefit managers (PBMs) on pharmacy viability.
Arkansas legislative committee shuts down fair and reasonable rate rule protecting pharmacies from PBMs
PBMs take a middle-ground role in prescription drug costs, standing between insurance companies and pharmaceutical manufacturers in setting prices. Opponents of the PBM system said this often results in pharmacy payments below the National Average Drug Acquisition Cost (NADAC) scale and has led to the closure of pharmacies in the state, with additional closures expected.
Emergency Rule 128 was passed in September to fine PBMs for payments below the NADAC and require them to pay a fair and reasonable rate. As an emergency rule, it was due to expire on Jan. 12, 2025. Rules subcommittee members voted against making the rule permanent on Thursday.
Gov. Sarah Huckabee Sanders issued a statement Thursday evening showing her displeasure with that vote.
“PBMs are driving up healthcare costs and will not be allowed to skirt the law,” the governor stated. “My administration will continue to hold them accountable, including enforcement of the $1.5 million fine we imposed on rule-breaking PBMs this summer—the largest pharmaceutical enforcement action in Arkansas history—and work with our partners in the legislature to further protect Arkansans.”
Arkansas lawmakers take action on rule holding pharmacy benefit managers accountable
Friday was the full committee’s final review of Rule 128 when legislators voted to make it permanent.
Sen. Justin Boyd (R-Fort Smith), a council member and pharmacist, applauded the vote on social media, calling it a big win for patients and communities and a display of Arkansas leading on PBM reforms. He also thanked Sanders for her support.
Rep. Brandon Achor (R-Maumelle), a pharmacist, voiced his support for adopting the rule with a social media post.
“Proud of our Arkansas Legislative Council for demanding Real Results Over Rhetoric and championing the great work @SarahHuckabee and her staff have done to prioritize Patients Over Profits with Rule 128 and the commitment to holding PBMs and Big Insurance accountable!” he posted.
Arkansas lawmakers take action on rule holding pharmacy benefit managers accountable
The Arkansas Pharmacists Association also applauded the Friday vote.
“We are pleased that Rule 128 was approved today by the Arkansas Legislative Council,” Arkansas Pharmacists Association CEO John Vinson said in a statement. “It’s an important precedent that will hold lawbreaking PBMs accountable through more transparency for fair prices, local access and better care for patients,”