Arizona SB 1225: appropriations; developmental disabilities programs

Bill Text

SB1225 - 572R - I Ver 

 REFERENCE TITLE: pharmacies; cost sharing requirement; rebates

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 SB 1225

 Introduced by 

 Senator 
 Fernandez

AN 
ACT

amending title 20, chapter 25, article 2, 
arizona revised statutes, by adding section 20-3337; relating to pharmacy 
benefit managers.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 20, chapter 25, article 2, 
Arizona Revised Statutes, is amended by adding section 20-3337, to read:

START_STATUTE20-3337. Pharmacy benefit managers; third-party payors; cost sharing 
requirement; prescription drugs

A. A pharmacy benefit manager or a 
third-party payor shall require that a covered individual's cost sharing 
requirement for a prescription drug be calculated at the point of sale based on 
a price that is reduced by an amount equal to at least one hundred percent of 
all rebates that are received by the pharmacy benefit manager or third-party 
payor for the prescription drug. 

B. A pharmacy benefit manager or 
third-party payor may not retain any portion of a rebate or other price 
concession as a source of revenue. 

C. This section does not prevent a 
pharmacy benefit manager or third-party payor from decreasing a covered 
individual's cost sharing requirement by an amount greater than what is 
required in subsection A of this section. 

D. For the purposes of this section:

1. "Cost sharing 
requirement" means any copayment, coinsurance, deductible or other covered 
individual obligation for a covered prescription drug. 

2. "covered individual" 
means an insured, enrollee or subscriber who is eligible to receive benefits 
through a health care plan as defined in section 20-3335.

3. "Rebate" means:

(a) Negotiated 
price concessions, including base price concessions and reasonable estimates or 
any price protection rebates and performance-based rebates, that may 
accrue directly or indirectly to the pharmacy benefit manager or third-party 
payor during the coverage year from a manufacturer, dispensing pharmacy or 
other party in connection with dispensing the prescription drug.

(b) Administration 
fees and other payments that are collected by the pharmacy benefit manager or 
third-party payor from a manufacturer. END_STATUTE

Sec. 2. Applicability

This act applies to subscription 
contracts, policies and evidences of coverage that are entered into, renewed, 
extended or modified from and after December 31, 2026.