Use this button to switch between dark and light mode.

State Lawmakers Pivot from PBMs to PSAOs in Ongoing Effort to Control Drug Prices

April 22, 2025 (1 min read)

State Lawmakers Target PSAOs

After targeting pharmacy benefit managers for years for contributing to the high cost of prescription drugs, state lawmakers have begun setting their sights on pharmacy services administrative organizations, or PSAOs, which help independent pharmacies negotiate with drug wholesalers. Virginia enacted a bill (HB 2375) last month that requires PSAOs to report their reimbursement rates. Arkansas lawmakers passed a bill (SB 475) this month aimed at regulating PSAOs. And legislation dealing with PSAOs is also pending in Mississippi, New York and Oregon. (PLURIBUS NEWS, LEXISNEXIS STATE NET)

—Compiled by SNCJ Managing Editor KOREY CLARK

 Visit our webpage to connect with a LexisNexis® State Net® representative and learn how the State Net legislative and regulatory tracking service can help you identify, track, analyze and report on relevant legislative and regulatory developments.

Subscribe

News & Views from the 50 States

Free subscription to the Capitol Journal keeps you current on legislative and regulatory news.