KS HB2551

Creates the Kansas pharmacy services administrative organization act requiring entities that negotiate with PBMs or third-party payers on behalf of independent pharmacies to obtain a license from the Kansas Department of Insurance, with initial application fees up to $200 and annual renewal fees up to $150

Requires pharmacy services administrative organizations to disclose ownership information to the department and to pharmacies, PBMs, and third-party payers before entering contracts, including any ownership connections to drug manufacturers or distributors

Mandates that contracts provide independent pharmacies with copies of any agreements, payment schedules, or reimbursement rates within 10 calendar days of execution, and requires timely pass-through of all claims remittances

Prohibits pharmacy services administrative organizations from requiring pharmacies to purchase specific drug amounts to access discounts or from mandating drug purchases from affiliated entities as a contract condition

Establishes enforcement penalties of $500 per day for noncompliance, authorizes license revocation, and classifies violations as unfair trade practices, with implementing regulations required by January 1, 2027