AK SB124

Requires pharmacy benefits managers and health care insurers to reduce a covered person's defined cost sharing for prescription drugs at point of sale by at least 85 percent of all rebates received or to be received in connection with the drug.

Mandates that a good faith estimate of the rebate-based cost sharing reduction be provided to the covered person at point of sale.

Prohibits pharmacies and pharmacists from being penalized or disciplined if the health care insurer fails to provide necessary rebate information, and prohibits insurers from imposing monetary penalties on pharmacies making good faith compliance efforts.

Defines "rebate" to include all negotiated price concessions from manufacturers, dispensing pharmacies, or other parties, whether or not formally described as rebates and whether accruing directly or indirectly to the insurer.

Applies to insurance policies or contracts issued, delivered, or renewed on or after January 1, 2025, and does not apply to the extent any provision conflicts with federal law.