Indiana Governor signs Senate Bill to protect small pharmacies
INDIANAPOLIS, Ind. (WTWO/WAWV)— Indiana Governor Mike Braun signed Senate Bill 140 last week to address restrictive practices by pharmacy benefit managers.
The bill that was signed into law establishes critical protections for local pharmacies and their patients. Senate Bill 140 will require pharmacy benefit managers to reimburse pharmacies fairly for their services based on the average cost to purchase and dispense medications. It also guarantees all pharmacies the opportunity to contract with a pharmacy benefit manager.
Indiana Statehouse bills on local pharmacies and pharmacy benefit managers
According to American Progress, 'PBMs occupy a central role in the drug price supply chain as negotiators, administrators, and decision-makers about which drugs will be most accessible to consumers.'
In the news release from the Indiana Pharmacy Association, they applauded Braun due to the belief that pharmacy benefit managers often favor their own affiliated pharmacies, which undercuts independent pharmacies, pushing out healthcare providers and driving up costs.
The bill also protects patients by allowing Hoosiers to choose their preferred pharmacy in their network. Pharmacy benefit managers must now offer retail networks that include at least one retail pharmacy within 30 miles of every insured person. They believe this will end reliance on mail-order-only options for Hoosiers and improve access to timely care.
'This bill is a significant step forward in ensuring the continued viability of local, community pharmacies,' said Indiana Pharmacy Association Executive Vice President Darren Covington, J.D. 'For far too long, pharmacy benefit managers have inadequately reimbursed community pharmacies, which has led to pharmacy closures, reduced hours, and staffing shortages. When local community pharmacies close, the whole community suffers. This bill sends a clear message that local community pharmacies matter to public health. We applaud the Indiana General Assembly and Governor Braun for their support of this important legislation.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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