MS HB1665

Transfers regulatory authority over pharmacy benefit managers (PBMs) from the State Board of Pharmacy to the Commissioner of Insurance effective July 1, 2026, and requires PSAOs (pharmacy services administrative organizations) to be licensed by the Commissioner.

Requires PBM and PSAO reimbursements to pharmacies to be at least equal to the pharmacy's acquisition cost for dispensed prescription drugs, and prohibits spread pricing practices.

Mandates payment of clean electronic claims within 7 days and paper claims within 35 days, with 1.5% monthly interest penalties for late payments and up to $25,000 administrative penalties for PBMs failing to pay 95% of clean claims quarterly.

Requires the State and School Employees Health Insurance Management Board to solicit requests for proposals for plan administration every two years rather than the current schedule, and mandates that any PBM contracted for the state health plan comply with the Pharmacy Benefit Prompt Pay Act.

Prohibits PBM steering practices and retaliation against pharmacists, and requires drug manufacturers, PBMs, PSAOs, and health insurers to submit annual reports to the Commissioner, who must develop a public website publishing related information.