Bill > SB1225

This bill requires pharmacy benefit managers (PBMs) and third-party payors, which are entities that manage prescription drug benefits for insurance plans, to pass on at least 100% of any rebates they receive from drug manufacturers or pharmacies to patients at the point of sale, meaning the patient's out-of-pocket cost for a prescription drug, such as a copayment, coinsurance, or deductible, must be reduced by the full amount of these rebates. This means PBMs and payors cannot keep any of these rebates or similar price concessions as profit. The bill also clarifies that PBMs and payors can choose to pass on more than 100% of the rebate to further lower a patient's costs, and it defines "cost sharing requirement" as any patient obligation for a prescription drug, "covered individual" as someone eligible for benefits under a health care plan, and "rebate" broadly to include negotiated price concessions and administrative fees received from manufacturers. These provisions will take effect for insurance contracts, policies, and coverage documents that are entered into, renewed, extended, or modified after December 31, 2026.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84541