AN ACT REQUIRING CONTRACTS BETWEEN PHARMACY BENEFITS MANAGERS AND HEALTH CARRIERS TO PROVIDE FEE-BASED COMPENSATION.

SB 1012 requires contracts between pharmacy benefits managers (PBMs) and health insurance companies to use fee-based compensation that is separate from prescription drug prices, rebates, premiums, or patient cost-sharing. This means PBMs would be paid a fixed fee for their services rather than compensation tied to drug pricing or financial incentives. The bill directly affects PBMs and health carriers by changing how they structure their contractual relationships. Its key provision aims to prevent potential conflicts of interest where PBM compensation might influence drug pricing decisions. The law applies to all new or renewed contracts between these entities.