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 drugs and spread pricing, while establishing a new requirement for a single state-run pharmacy benefits manager. The legislation directs the Department of Human Services to select one third-party administrator by July 2026 to manage all pharmacy benefits for Medicaid recipients, replacing the current system where multiple pharmacy benefits managers may handle these services. Managed care organizations receiving Medicaid contracts will be required to use this state pharmacy benefits manager, and the selection process must include competitive bidding and strict conflict-of-interest disclosures to prevent financial entanglements between the manager and other healthcare entities.