SB 252 Alabama Senate · 2025 Regular Session

Pharmacy Benefits Managers; providing a prescription reimbursement rate for independent pharmacies and regulating other practices

SB 252 requires pharmacy benefits managers (PBMs) in Alabama to pay independent pharmacies a minimum reimbursement rate for prescription drugs, directly affecting these pharmacies and PBMs. The bill establishes a specific payment standard for prescriptions and adds Section 27-45A-14 to Alabama’s code to regulate PBM practices. Key provisions include setting a baseline payment amount and restricting certain PBM actions that impact pharmacy reimbursement. This policy change aims to address financial challenges faced by independent pharmacies through mandated payment terms.
Bill status signed all 5 stages cleared
Introduction
Mar 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Apr 2025
Signed into Law
Apr 2025
Introduced Mar 18, 2025 Signed Apr 15, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 4 edits · Apr 15, 2025
MODERATE
The bill was finalized as an enrolled version, which is the final step before it becomes law. The text includes minor formatting corrections and clarifies the definition of 'Health Insurer' to include entities under state jurisdiction. Crucially, the definition of 'Pharmacy Benefits Manager' was expanded to explicitly include prescription discount programs administered on behalf of PBMs or plans, while adding specific exemptions for licensed healthcare facilities and professionals to prevent them from being regulated as PBMs.
Scope change
The scope of the bill remains focused on regulating pharmacy benefits managers, but the definition of who falls under that regulation was broadened to include discount program administrators, with specific carve-outs for licensed medical facilities and professionals.
DEFINITION

The definition of 'Health Insurer' was expanded to explicitly include entities subject to state jurisdiction that contract to provide health care services, broadening the range of entities covered by the bill.

The definition of 'Pharmacy Benefits Manager' was updated to include persons administering prescription discount programs directly for or on behalf of a PBM or health benefit plan, ensuring these entities are subject to the same regulations.

New exemptions were added to the 'Pharmacy Benefits Manager' definition, clarifying that licensed healthcare facilities, licensed healthcare professionals, and consultants who only provide advice are not considered PBMs under this act.

TECHNICAL

Minor formatting and line break adjustments were made throughout the document to finalize the text for printing and publication.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
34
Key actions
11
Committee
4
Amendments
8
Apr 8, 2025
Upper · Passed
Gudger Concur In and Adopt - Adopted Roll Call 558
upper
Apr 8, 2025
Lower · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 648
lower
Apr 8, 2025
Lower · Passed
Motion to Adopt - Adopted Roll Call 647
lower
Apr 8, 2025
Introduced
Lovvorn 1st Amendment Offered
lower
Apr 8, 2025
Lower · Passed
Motion to Adopt - Adopted Roll Call 646
lower
Apr 8, 2025
Introduced
Insurance Engrossed Substitute Offered (Insurance)
lower
Apr 2, 2025
Lower · Passed
Reported Out of Committee Second House (Insurance)
lower
Apr 2, 2025
Introduced
Insurance 1st Amendment (Insurance)
lower
Mar 20, 2025
Lower · Passed
Pending Committee Action in Second House (Insurance)
lower
Mar 20, 2025
Upper · Passed
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 421
upper
Mar 20, 2025
Upper · Passed
Gudger motion to Adopt - Adopted Roll Call 420
upper
Mar 20, 2025
Introduced
Gudger 1st Amendment Offered
upper
Mar 20, 2025
Introduced
Elliott 1st Amendment Offered
upper
Mar 20, 2025
Introduced
Stutts 1st Amendment Offered
upper
Mar 20, 2025
Upper · Passed
Beasley motion to Adopt - Adopted Roll Call 417
upper
Mar 20, 2025
Introduced
Banking and Insurance 1st Amendment Offered (Banking and Insurance)
upper
Mar 19, 2025
Upper · Passed
Reported Out of Committee House of Origin
upper
Mar 19, 2025
Introduced
Banking and Insurance 1st Amendment (Banking and Insurance)
upper
Mar 18, 2025
Upper · Passed
Pending Committee Action in House of Origin (Banking and Insurance)
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Billy Beasley
Billy Beasley
DDemocratic
AL
28