Act 994 Rebate & Spread Reporting Requirements

Arkansas Insurance Department Asa Hutchinson Allen Kerr Governor Commissioner 1200 West Third Street, Little Rock, AR 72201-1904 · (501) 371-2600 · (501) 371-2618 fax · www.insurance.arkansas.gov Information (800) 282-9134 · Consumer Services (800) 852-5494 · Seniors (800) 224-6330 · Criminal Inv. (866) 660-0888 JULY 22, 2019 BULLETIN NO. 7 - 2019 TO: ALL LICENSED PHARMACY BENEFIT MANAGERS, HEALTH INSURERS, HEALTH MAINTENANCE ORGANIZATIONS, HOSPITAL/MEDICAL SERVICE CORPORATIONS, AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT SUBJECT: ACT 994 OF 2019 REBATE & “SPREAD” REPORTING REQUIREMENTS This Bulletin is directed to pharmacy benefit managers, health insurers and HMOs related to Arkansas enacted rebate reporting requirements in Act 994 of 2019, in “An Act To Clarify The State Insurance Department’s Regulatory And Enforcement Authority Concerning Pharmacy Benefit Managers.“ Section Nine (9) of this Legislation, now codified in Ark. Code Ann. § 23-92- 505(b)(1), requires pharmacy benefit managers (“PBMs”) and healthcare insurers to report various data related to pharmaceutical manufacturing rebates, as well as “spread reporting,” on a quarterly basis to the Arkansas Insurance Commissioner (“Commissioner”). The provisions in Section Nine (9) go into effect on or after July 24, 2019. The Arkansas Insurance Department (“AID”) is currently in the process of designing a form or format to capture the required rebate and “spread” data. In order to provide uniformity and consistency as to what is submitted by various entities, AID intends to file a rule with a requisite uniform form within the next several months. The purpose of this Bulletin is to advise the affected PBMs and healthcare insurers that they do not need to submit the statutorily described quarterly data until AID has developed a form and rule. AID will go back and capture the information in the last two quarters of 2019, following promulgation of the rule and form. For questions related to this Bulletin, please contact Booth Rand, at the Department, (501) 371- 2820. July 22, 2019 ALLEN KERR DATE INSURANCE COMMISSIONER STATE OF ARKANSAS