Bill > HB1959

This bill, known as the "Freedom, Access, and Integrity in Registered Pharmacy (FAIR Rx) Act," aims to prevent pharmacy benefits managers (PBMs) and health insurance issuers from owning or controlling pharmacies. PBMs are entities that manage prescription drug benefits on behalf of health plans, and health insurance issuers are companies that provide health insurance. The bill defines "control" broadly to include influence over pharmacy operations, dispensing decisions, and a pharmacist's independent judgment. Starting July 1, 2028, it prohibits any person or entity from directly or indirectly owning, operating, or controlling both a pharmacy and a health insurance issuer or PBM, with a threshold of more than five percent ownership interest. However, there are exceptions for hospital or health-system pharmacies, independently owned pharmacies offering mail-order or specialty services, and certain FDA-designated orphan drugs or drugs requiring specific risk evaluation and mitigation strategies (REMS). Pharmacies in violation have until December 31, 2028, to find a buyer if they are actively pursuing a bona fide sale to an unaffiliated entity, with a possible six-month extension. The Attorney General is authorized to enforce the act with civil penalties of up to $10,000 per day for violations, and aggrieved parties can request hearings. The bill also specifies where legal challenges must be filed and clarifies that it does not prohibit employers from owning pharmacies solely for their employees or affect contracts with the U.S. government for federal healthcare programs.