Alabama Passes Pharmacy Benefit Manager Reform Act

Alabama's legislature has unanimously passed the Community Pharmacy Relief Act, which aims to support independent pharmacies by regulating Pharmacy Benefit Managers (PBMs). The bill mandates PBMs to reimburse local pharmacies at least the state Medicaid rate, ensuring fair compensation and preventing closures due to financial strain. It also requires PBMs to pass 100% of manufacturer rebates to health plans or use them to reduce patient costs, unless negotiated otherwise. The legislation is seen as a lifeline for small pharmacies, many of which have struggled with lower reimbursement rates compared to larger chains. This initiative, awaiting Governor Kay Ivey's signature, is part of a broader trend with similar regulatory efforts in states like Mississippi and Arkansas. The bill, praised by pharmacists and legislators alike, aims to maintain patient access to local pharmacies, particularly in rural areas.