TITLE: Relating to the relationship between a pharmacy benefit manager and a pharmacist or pharmacy.

SUMMARY: Relating to the relationship between a pharmacy benefit manager and a pharmacist or pharmacy.

FULL TEXT:
AN ACT relating to the relationship between a pharmacy benefit manager and a pharmacist or pharmacy. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter M, Chapter 1369, Insurance Code, is amended by adding Section 1369.6045 to read as follows: Sec. 1369.6045. AFFILIATED PHARMACISTS AND PHARMACIES PROHIBITED. A pharmacy benefit manager may not directly, or indirectly through one or more intermediaries, control or be under common control with a pharmacist or pharmacy in this state. SECTION 2. Subchapter D, Chapter 4151, Insurance Code, is amended by adding Section 4151.155 to read as follows: Sec. 4151.155. COMPTROLLER REPORT. Not later than September 1 of each even-numbered year, the comptroller shall prepare and submit a written report to the legislature that contains an assessment of and recommendations regarding the impact of pharmacy benefit manager regulation and affiliation in this state on: (1) independent pharmacies; (2) rural pharmacies; (3) prescription drug prices; (4) patient access to prescription drugs; and (5) competition in the pharmacy market. SECTION 3. Effective January 1, 2027, Subchapter B, Chapter 565, Occupations Code, is amended by adding Section 565.05912 to read as follows: Sec. 565.05912. REVOCATION OR REFUSAL TO RENEW FOR AFFILIATION WITH PHARMACY BENEFIT MANAGER. The board shall revoke or refuse to renew a pharmacy license under Chapter 560 or a license to practice pharmacy under Chapter 558 if the holder of the license is affiliated with a pharmacy benefit manager in violation of Section 1369.6045, Insurance Code. SECTION 4. Effective January 1, 2027, Section 1369.604, Insurance Code, is repealed. SECTION 5. (a) Subject to Subsection (b) of this section, the change in law made by this Act applies to an affiliation between a pharmacy benefit manager and a pharmacist or pharmacy acquired before, on, or after the effective date of this Act. (b) Section 1360.6045, Insurance Code, as added by this Act, does not prohibit the continuation until January 1, 2027, of an affiliation between a pharmacy benefit manager and a pharmacist or pharmacy that existed immediately before the effective date of this Act. A pharmacy benefit manager or pharmacist or pharmacy subject to Section 1369.6045, Insurance Code, as added by this Act, shall divest all affiliated interests as necessary to comply with that section not later than January 1, 2027. SECTION 6. Except as otherwise provided by this Act, this Act takes effect September 1, 2025.