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.