SB 121 Summary

• Requires pharmacy benefits managers to register with the state director and establishes fiduciary duties, including passing manufacturer rebates and payments in full to plan sponsors and disclosing all financial arrangements with drug manufacturers.

• Mandates transparent drug pricing lists updated within one business day of significant price changes, with specific requirements for drug information including national drug codes, acquisition costs, and reimbursement amounts.

• Guarantees patients the right to choose any willing pharmacy and prohibits insurers from steering patients to affiliated pharmacies through copayment differentials, incentives, or marketing practices.

• Establishes minimum reimbursement rates based on national average drug acquisition cost, wholesale acquisition cost, or pharmacy acquisition cost, plus a professional dispensing fee set by the insurance director.

• Applies requirements to municipal health insurance plans and state employee health plans, with an effective date of July 1, 2025.