MONTGOMERY, Ala. — A bill that would require third-party groups that negotiate drug prices – known as pharmacy benefit managers or PBMs – to pay independent pharmacies more for some medications passed through both chambers of the Alabama Legislature on Tuesday, sending it to Gov. Kay Ivey for final approval.
Carried by former pharmacist Sen. Billy Beasley, D-Clayton, Senate Bill 252 would require PBMs to reimburse independent pharmacies for drugs by an amount equal to or above what is paid by the Alabama Medicaid Agency, which also includes a dispensing fee of $10.64 per prescription.
The bill would also prohibit anti-competitive PBM practices such as steering patients toward specific pharmacies of which they hold affiliations with, issuing retroactive fees or charging insurers for drugs at rates more than what they reimburse pharmacies for, and pocketing the difference, a practice known as spread pricing.
“I appreciate every senator in the chamber,” Beasley said on the Senate bill after the body passed the bill, applause from his Senate colleagues dying down. “This has been a win for the people of Alabama, it’s been a huge win for community pharmacies who just want to be able to go to work, make a living and take care of their patients. I’ve been fighting this fight since the late 1980s, and this is a big day.”
Pharmacists from across the state have backed SB252, several saying in public hearings that PBM practices were putting them out of business. More than 100 pharmacies staged a walkout in February in support of SB93, with at least five locally-owned pharmacies having closed this year.
“It’s important for small businesses in Alabama and for patients to maintain their access to those health care providers that are pharmacies in their community,” said Rep. Phillip Rigsby, R-Huntsville, introducing the bill on the House floor. A pharmacist, Rigsby carried the bill in the House. He sponsored a similar bill last year.
House members of both the Republican and Democratic party thanked Rigsby on the House floor for his work on the bill, and championed the proposal as an effective tool to ensure pharmacies in rural areas of the state remain operational.
The bill went on to pass out of the House unanimously with a minor substitute and amendment, and an emotional Rigsby thanked his House colleagues for their support, while noting the “many ups and downs” he experienced over the past several months in working on the legislation.
“This is a win for pharmacists”
Rep. Phillip Rigsby on the passage of SB252, which would prohibit pharmacy benefit managers from engaging in certain practices that local pharmacies say are putting them out of business.#ALPolitics pic.twitter.com/DixqXynAbq
— Alexander Willis (@ReporterWillis) April 8, 2025
There was opposition to the bill as it moved through the legislative process. Several business groups have warned lawmakers that the increased costs to PBMs will be passed on to Alabama businesses and their employees and customers.
Rep. A.J. McCampbell, D-Demopolis, called the bill’s passage “a win for David,” referencing the biblical story of David and Goliath, and Rigsby, speaking to members of the press, outlined how SB93 could prove to be a lifeline for many Alabamians living in rural communities.
“When that community pharmacy closes, up to 5,000 people lose access to health care, (and) we all know pharmacists are our most accessible health care provider,” Rigsby said.
“You can go into any pharmacy today and pretty much ask any question that you want to without making an appointment, without paying a copay, and you’re going to get sound health care advice. That’s what pharmacists do, we take care of patients; SB252 allows us to keep doing that, and I’m thankful.”
Just over three hours after passing in the House, the Senate took up the amended bill and concurred with the changes unanimously.
“Thank you for leading the charge on this particular bill,” said Senate Pro Tem Garlan Gudger, R-Cullman, to Beasley as the body stood to applaud the bill’s passage.