A PBM must obtain a license from the Insurance Commissioner. The commissioner shall prescribe the application for a license to operate in Arkansas as a PBM and may charge application fees and renewal fees as established by rule. The commissioner shall issue rules establishing the licensing, fees, application, financial standards, and reporting requirements of PBMs. As Amended March 30, 2021, the definition of “Health Benefit Plan” has changed from referring to a “healthcare insurer” to a “payor.” The Licensure Act is amended to change references that formerly addressed PBM reporting requirements regarding “healthcare insurers” to “payors” instead. Also, the Commissioner is instructed to adopt rules relating to network adequacy, requiring access to a community pharmacy at a standard “no less strict than the federal standards” for Tricare or Part D.

Link to Existing Law: AR ST § 23-92-504

This is a fairly sufficient statute for licensure, which, in tandem with other existing PBM laws, provides a framework for regulatory oversight of PBMs. This law requires PBMs to be licensed and allows the Insurance Commissioner to review PBM compensation packages and ensure their reimbursement rates are fair and reasonable. The March 30, 2021 amendments also require network adequacy standards z