AN ACT RELATING TO INSURANCE -- PHARMACY FREEDOM OF CHOICE -- FAIR COMPETITION AND PRACTICES

HB 5254 requires pharmacy benefit managers (PBMs) to reimburse pharmacists for prescription drugs at a minimum of the national average cost pharmacies pay to acquire drugs plus a dispensing fee equal to Rhode Island's current Medicaid rate for such services. If the national average cost is unavailable, PBMs must pay the wholesale acquisition cost plus the same dispensing fee. This bill directly affects PBMs and pharmacies in Rhode Island by establishing clear reimbursement standards and mandating transparency in financial arrangements. It also authorizes the Health Insurance Commissioner to impose fines of up to $10,000 per violation for non-compliance, aiming to ensure fair compensation and competitive practices.