LITTLE ROCK, Ark. – Arkansas lawmakers are cracking down on pharmacy benefit managers (PBM) after passing a law that fines them up to $5,000 per violation of medication pricing standards paid to pharmacies.
According to state law, no pharmacy benefit manager can pay a pharmacy below their cost to purchase a drug and below a fair and reasonable rate on top of that.
PBMs were created to negotiate terms for prescription drug costs for millions of Americans, but recently they have been under fire by federal officials after a recent report from the Federal Trade Commission claimed these companies “may be profiting by inflating drug costs” while also “squeezing main street pharmacies.”
State Rep. Brandon Achor (R-Maumelle), who owns Achor Family Pharmacy in Maumelle, has spoken with KARK 4 News before about PBM entities not following state law and putting his pharmacy, as well as other independent pharmacies, at risk for survival because of this unfair compensation.