PBM Licensure Law – ALABAMA

ALABAMA SUMMARY OF EXISTING LAW

Effective January 1, 2020, to conduct business in this state, a pharmacy benefits manager must be licensed by the commissioner. A PBM is defined as “a person, business, or entity, including a wholly or partially owned or controlled subsidiary of a pharmacy benefits manager, that provides claims processing services or other prescription drug or device services, or both, for health benefit plans.” The license shall be initially renewed in accordance with a schedule prescribed by the commissioner and shall thereafter be subject to renewal on a biennial basis.

Link to Existing Law: Ala.Code 1975 § 27-45A-4

PRACTICAL NOTE

Licensure requirements such as this one allows the state to establish minimum quality standards by which a PBM must adhere. While this law requires registration of PBMs, it does not place substantive rules or operational requirements on them.