Bill > HB2551

This bill establishes the Kansas Pharmacy Services Administrative Organization Act, which regulates entities that contract with independent pharmacies to manage their business with third-party payers, such as insurance companies, and pharmacy benefits managers (PBMs), which are companies that manage prescription drug benefits on behalf of health insurers, pharmacy benefit plans, and other payers. These organizations, referred to as "pharmacy services administrative organizations" or PSOs, will be licensed and overseen by the Commissioner of Insurance, who is the head of the Kansas Department of Insurance. The act requires PSOs to disclose their ownership and control, especially if they are connected to entities that manufacture or distribute drugs, and mandates that they provide independent pharmacies with copies of contracts and payment schedules negotiated on their behalf. Furthermore, PSOs are prohibited from discriminating in drug pricing and cannot force pharmacies to buy specific drug quantities to access discounts. The bill also outlines requirements for handling appeals and audits involving independent pharmacies and PBMs, ensuring timely communication and payment pass-through. Non-compliance with the act can result in daily penalties, license revocation, and may be considered an unfair trade practice. The Commissioner is authorized to create necessary rules and regulations by January 1, 2027, to implement this new law.

Business and Industry

Insurance (H)

https://kslegislature.gov/li/b2025_26/measures/hb2551/