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Back to HB 1442
Arkansas General Assembly· HB 1442Died in Senate Committee at Sine Die adjournment.

An act TO SET RESTRICTIONS ON PHARMACY CONTRACTING 10 AND CONFLICTS OF INTEREST, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas         As Engrossed: H2/24/25 H2/26/25
2 95th General Assembly
                                     A Bill

3 Regular Session, 2025                                           HOUSE BILL 1442

4

5 By: Representative Achor

6 By: Senators D. Wallace, C. Penzo

7

8                                    For An Act To Be Entitled

9   AN ACT TO SET RESTRICTIONS ON PHARMACY CONTRACTING

10  AND CONFLICTS OF INTEREST; TO ESTABLISH

11  PHARMACEUTICAL PATIENT FREEDOM OF CHOICE; AND FOR

12  OTHER PURPOSES.

13

14

15                                   Subtitle

16                       TO SET RESTRICTIONS ON PHARMACY

17                       CONTRACTING AND CONFLICTS OF INTEREST;

18                       AND TO ESTABLISH PHARMACEUTICAL PATIENT

19                       FREEDOM OF CHOICE.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23  SECTION 1. Arkansas Code Title 17, Chapter 92, Subchapter 4, is

24 amended to add an additional section to read as follows:

25  17-92-414. Prohibition of pharmacy contracting - Conflicts of interest

26 � Pharmacy permit holder responsibilities -- Definition.

27  (a) It is the intent of the General Assembly to preserve patient

28 access, to improve quality of care outcomes, and to prevent anti-competitive

29 patient steering for pharmacy care services.

30  (b) As used in this section, "parent entity" means a federally

31 qualified health center, a Federally Qualified Health Center Look-Alike, or a

32 for-profit, nonprofit, tax-exempt, or governmentally funded hospital that has

33 a direct or indirect interest or ownership in a licensed pharmacy permit for

34 the sale at retail of drugs and medicines.

35  (c) A parent entity shall not:

36  (1) Financially incentivize a patient or plan beneficiary to

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1 obtain a pharmacist's services from a pharmacy with terms that are not

2 offered equally at other network pharmacies;

3               (2)(A) Allow a pharmacy to be a limited provider of pharmacist's

4 services through the use of a network design that limits the number of

5 providers in said network.

6               (B) The Arkansas State Board of Pharmacy may exempt a

7 parent entity from subdivision (c)(2)(A) of this section on a per-pharmacy-

8 contract basis if the parent entity demonstrates a verified net financial

9 loss for the proposed contract; or

10              (3) Limit a patient's freedom of choice through financial

11 incentives.

12  (d) Upon receiving a complaint involving a violation of subsection (c)

13 of this section, the board shall investigate the complaint and schedule a

14 hearing within thirty (30) business days of receipt of the complaint.

15  (e) A repetitive violation of this section is also a violation of the

16 Unfair Practices Act, � 4-75-201 et seq.

17  (f) Market-based cash pricing of a drug or medication delinked from

18 any program assistance, contract, or network agreement of a drug or

19 medication is not a financial incentive under this section.

20  (g)(1) A parent entity that owns pharmacies and offers prospective

21 cash savings plans through the 340B Drug Pricing Program shall allow other

22 network pharmacies to participate in the prospective cash savings plan.

23              (2) A parent entity is exempt from subdivision (g)(1) of this

24 section on a per-pharmacy-contract basis if the board finds that the parent

25 entity demonstrates a violation of terms or conditions of the 340B Drug

26 Pricing Program prospective cash savings plan by the contracted pharmacy.

27              (3) A parent entity is exempt from subdivision (g)(1) of this

28 section on a per-pharmacy contract basis if the prospective cash savings plan

29 offered through the 340B Drug Pricing Program is solely a cost recovery model

30 that does not include any dispensing or patient management fees and limits

31 the amount charged to the patient not to exceed the 340B Drug Pricing Program

32 acquisition cost plus itemizable administration or processing fees.

33  (h) A prospective cash savings plan offered through the 340B Drug

34 Pricing Program that is solely a cost recovery model that does not include

35 any dispensing or patient management fees and limits the amount charged to

36 the patient not to exceed the 340B Drug Pricing Program acquisition cost plus

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1 itemizable administration or processing fees is not a financial incentive

2 under this section.

3   (i) A patient assistance program that utilizes or maximizes

4 pharmaceutical manufacturer cost or payment assistance for patients who have

5 opted in to participate in the patient assistance program is not a financial

6 incentive under this section.

7   (j) The board shall determine if there has been any violation of this

8 section during the inspections conducted by the board.

9   (k)(1) The board may issue temporary exemptions to this section on a

10 per-permit-holder basis to specific limited distribution or specialty item

11 drugs or to promote, preserve, and protect the public health, safety, and

12 welfare through the effective regulation of the aspects of the drug delivery

13 system.

14          (2) The board may promulgate rules to implement subdivision

15 (k)(1) of this section.

16

17  SECTION 2. Arkansas Code Title 23, Chapter 99, is amended to add an

18 additional subchapter to read as follows:

19          Subchapter 19 -- Pharmaceutical Patient Freedom of Choice

20

21  23-99-1901. Legislative intent.

22  It is the intent of the General Assembly to provide a right to freedom

23 of choice in selecting prescriptions or pharmaceutical supplies and services

24 from a pharmacy of the patient or responsible party.

25

26  23-99-1902. Definition.

27  As used in this subchapter, "pharmacy treatment plan" means a plan of

28 care for choice in preferred pharmacy, change of pharmacy, or choice of

29 multiple pharmacies depending on a patient's health conditions, needs, and

30 preferences.

31

32  23-99-1903. Pharmaceutical patient freedom of choice.

33  (a) A patient or his or her responsible party shall have freedom of

34 choice of pharmacy or pharmacy treatment plan by any permit holder of the

35 Arkansas State Board of Pharmacy.

36  (b) A patient may make a selection of pharmacy or pharmacy treatment

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1 plan only when the patient or his or her responsible party is fully informed

2 of his or her freedom of choice.

3   (c) Any permit holder of the board shall not participate in any plan,

4 agreement, or arrangement that eliminates or detrimentally affects the

5 traditional relationship of physician, patient, pharmacist, and the patient's

6 freedom of choice of professional services.

7   (d)(1) If a for-profit, nonprofit, tax exempt, or governmentally

8 funded hospital, federally qualified health center, or a Federally Qualified

9 Health Center Look-Alike that has direct or indirect interest in a permit

10 holder of the board and a patient is receiving prescriptions issued by

11 prescribers providing services in or for the hospital, emergency room, health

12 system clinic, or any other associated health system facilities for the

13 permit holder, the permit holder shall document the patient's choice of

14 pharmacy or pharmacy treatment plan.

15              (2) The permit holder under subdivision (d)(1) of this section

16 shall maintain:

17                  (A) Documentation of the patient's choice of pharmacy or

18 pharmacy treatment plan in the patient's medical record, pharmacy management

19 system, or files; and

20                  (B) Policies and procedures that document how the

21 patient's freedom of choice of pharmacy or pharmacy treatment plan is

22 maintained.

23  (e) A patient may choose or change the provider pharmacy at any time.

24  (f) The board may review documentation, policies, and procedures

25 required under this section for the permit holders of the board during an

26 inspection by the board.

27  (g) A patient assistance program that utilizes or maximizes

28 pharmaceutical manufacturer cost or payment assistance for patients who have

29 opted in to participate in the patient assistance program is not a violation

30 of patient freedom of choice under this section.

31  (h)(1) The board may issue temporary exemptions to this section on a

32 per-permit-holder basis to specific limited distribution or specialty item

33 drugs or to promote, preserve, and protect the public health, safety, and

34 welfare through the effective regulation of the aspects of the drug delivery

35 system.

36              (2) The board may promulgate rules to implement subdivision

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