AZ SB1549

Creates a new requirement for the Arizona Department of Health Services to compile an annual list of prescription drugs essential for treating diabetes in Arizona, including all insulin and biguanide medications, along with their wholesale acquisition costs by February 1 each year.

Requires drug manufacturers to submit detailed annual reports to the department by April 1, including production costs, administrative expenses, profits, patient assistance programs, wholesale acquisition costs, and five-year price increase history.

Mandates manufacturers of drugs with wholesale acquisition cost increases meeting or exceeding either the prior year's medical care inflation rate or twice the prior two years' medical care inflation rate to explain the reasons for those increases.

Requires pharmacy benefit managers to report annually by April 1 on rebates negotiated for diabetes drugs, including total rebates retained and amounts negotiated for Medicare, Medicaid, government entities, and private coverage.

Directs the Department of Health Services to analyze submitted information and publish an annual report by June 1 analyzing diabetes drug prices, reasons for increases, spending effects, and potential cost reduction opportunities.