SFAA Comments on Arkansas Pharmacy Benefit Managers Regulations
SFAA submitted comments to the Arkansas Insurance Department (Department) to address proposed regulations that would require pharmacy benefit managers (PBM) to post a $1 million license bond. The proposed rules would permit direct actions on the bond. If the bond amount would cause the PBM significant financial hardship, the Insurance Commissioner could reduce the amount required. We explained the surety?s underwriting process and noted that the high bond amount could reduce the bond?s availability. Similarly, we explained that the proposed regulations contain a broad obligation in the bond?s conditions with regard to complying with any statute. We recommended that the scope of the bond?s conditions be limited to compliance with the applicable laws and regulations for PBMs. SFAA offered to work with the Department on these issues to improve the bond?s availability. The proposed rules also provide that a PBM that furnishes a $1 million bond under the PBM regulation need not furnish a $25,000 bond under the TPA regulation.
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