Bill > SB2040

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 prohibits any person or entity from directly or indirectly owning, operating, controlling, or directing the operations of a pharmacy if they also own, operate, control, or direct the operations of a health insurance issuer or a PBM, with this restriction applying if the ownership interest is greater than five percent. However, the bill includes exceptions, stating that hospital or health-system pharmacies are not considered PBMs, and it does not restrict independently owned pharmacies from offering mail-order or specialty services, nor does it apply to certain FDA-designated orphan drugs or drugs requiring specific risk management strategies. Pharmacies currently in violation have until December 31, 2028, to demonstrate they are 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 violation, and aggrieved parties can request a hearing. The bill also specifies that employers can own pharmacies for their own employees, and it does not apply to pharmacy services contracted by the U.S. government for federal healthcare programs.