Bill to require pharmacy benefit manager licensures passed to Gov.’s desk

TOPEKA, Kan. (WIBW) - A bill has passed the Kansas Legislature which would require pharmacy benefit managers to be licensed to work in the Sunflower State rather than just a registration.

Kansas Attorney General Derek Schmidt says the Kansas Legislature passed Senate Bill 28 which would regulate pharmacy benefit managers who operate in the Sunflower State.

The bill was passed in the House on Monday, March 21, with a 120 - 2 vote. It was approved with a unanimous vote in the Senate on Wednesday, March 30.

“Our office successfully fought at the U.S. Supreme Court to defend the authority of states to regulate pharmacy benefits managers, and I am encouraged Kansas is now exercising that authority,” Schmidt said. “At the attorney general’s office, we are holding PBMs accountable for unlawful business practices that have cost Kansas taxpayers tens of millions of dollars through public healthcare programs. This bill will provide similar protections for Kansans throughout our state, including many independent pharmacies. I commend legislators of both parties who worked together to get this job done.”

In 2020, the AG said he filed a U.S. Supreme Court brief in support of Arkansas’s authority to regulate PBMs. Later that year, he said the states prevailed in Rutledge v. Pharmaceutical Care Management Association and precedence was set.

In 2021, Schmidt said a settlement with Centene over its PBM services in the state Medicaid program, which recovered nearly $27.6 million for Kansas taxpayers.

The AG noted that additional investigations are ongoing.

The bill now awaits the signature of Governor Laura Kelly to become law.

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