An Act amending the act of November 21, 2016 (P.L.1318, No.169), known as the Pharmacy Audit Integrity and Transparency Act, in preliminary provisions, further providing for definitions; and, in pharmacy benefits manager contracts, providing for State pharmacy benefits manager.

This bill amends Pennsylvania's Pharmacy Audit Integrity and Transparency Act to update definitions for "specialty drug" and "spread pricing" while establishing a new role for a State pharmacy benefits manager. The updated definitions clarify which prescription medications qualify as specialty drugs based on cost, handling requirements, and patient needs, while defining spread pricing as when a pharmacy benefits manager charges more than it pays pharmacists. The bill requires the Department of Human Services to select a single third-party administrator to manage all pharmacy benefits for Medicaid recipients by July 2026, ensuring all managed care organizations contract with this designated manager. The procurement process mandates competitive selection with strict conflict-of-interest disclosures to prevent conflicts between the manager and other healthcare entities like pharmacies, drug distributors, or managed care organizations.