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

SB 165 regulates pharmacy benefit managers (PBMs) by including them under the definition of third-party administrators. It requires PBMs to file annual reports detailing their financial arrangements with insurers and their organizational structure if affiliated. The bill specifically prohibits "spread pricing," which means PBMs cannot charge health benefit plans and covered persons more for a prescription drug than what they pay the pharmacy, less an administrative fee. This aims to ensure fair pricing practices for prescription drugs, directly affecting PBMs, health benefit plans, and individuals covered by those plans.