HB515 Summary

• Limits employer liability for prescription medication costs to the contracted rate when the employer has negotiated a contract with a physician, pharmacy, or pharmacy benefit management company at a price below the maximum fee schedule or prevailing rate.

• Requires non-contracted prescription benefit providers to dispense medication at the employer's contracted rate and treat that payment as full reimbursement; providers cannot balance bill or charge the employer more.

• Establishes a conclusive presumption that contracted medication rates agreed between employers and pharmacies are reasonably necessary, overriding prevailing rate or fee schedule requirements.

• Amends sections 25-5-77, 25-5-293, and 25-5-314 of Alabama Code to implement these prescription benefit provisions across workers' compensation medical liability rules and insurance carrier payment requirements.

• Takes effect on the first day of the third month following passage and approval by the Governor.