AZ HB2272

Establishes pharmacy benefits manager (PBM) requirements including fiduciary duty to covered entities and mandatory disclosure of conflicts of interest, financial arrangements with drug manufacturers, and all benefits or payments received from drug substitutions.

Requires PBMs to pass through in full to covered entities any payments or benefits derived from volume-based sales, drug substitutions where generic drugs are substituted for higher-priced drugs, or any remuneration from prescription drug manufacturers.

Mandates PBM registration with the Department of Health Services, annual certification of compliance, and market conduct reviews at least once every three years with findings reported to the governor and legislature.

Defines covered entities to include nonprofit hospitals, insurers, health maintenance organizations, state health programs, employers, labor unions, and other organized groups providing health coverage in Arizona.

Establishes a temporary discounted drugs study committee to examine feasibility of using federal section 340B drug discount program for vulnerable populations through various state health programs; committee must report findings by November 15, 2011, and the section repeals September 30, 2012.