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2/4/2026
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AG uses new law sponsored by Sen. Ujifusa, Rep. Kislak to protect independent pharmacies
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STATE HOUSE — A law sponsored by Sen. Linda Ujifusa and Rep. Rebecca Kislak and enacted in June by the General Assembly has resulted in a legal win protecting Rhode Island’s independent pharmacies.
Attorney General Peter F. Neronha today announced the resolution of an enforcement action taken against pharmacy benefits manager (PBM) Prime Therapeutics LLC for violating the law (2025-H 5248A, 2025-S 0314A), which placed reasonable limits on pharmacy audits and clearly established the attorney general’s enforcement authority.
The attorney general’s complaint alleged that on Oct. 27, 2025, Prime Therapeutics initiated unannounced on-site audits of three independently owned local pharmacies: Atwood Pharmacy in Johnston, Park Ave Pharmacy in Cranston and Park Square Pharmacy in North Smithfield. According the to the complaint, Prime failed to provide the pharmacies with advance notice of the range of prescription numbers involved in the audit, audited for a period of more than two years and refused to allow the pharmacies any opportunity to reschedule the audit – all alleged violations of the law.
In an Assurance of Voluntary Compliance filed in court, Prime Therapeutics agreed to terminate the audits and agreed to conduct all future audits in compliance with the law. Prime Therapeutics also agreed to several additional provisions designed to ensure Prime’s future compliance with the law.
“Independent pharmacies are beloved small businesses that provide vital, valuable support to their community. Unfortunately, they are an endangered species due to the practices of the giant pharmacy chains and the PBMs that partner with those chains,” said Representative Kislak (D-Dist. 4, Providence). “Our bill was aimed at stopping PBMs from using audits as a tool to put independent pharmacies at even more of a competitive disadvantage. We are very happy to see the law is already working to protect independent pharmacies against this anti-competitive practice, and we are very grateful to Attorney General Neronha for his office’s quick action putting it to good use.”
Said Senator Ujifusa (D-Dist. 11, Portsmouth, Bristol), “We are proud that Rhode Island is now able to stand up for small businesses and consumer protection by stopping some of the harmful practices of PBMs, which are a ‘Big Business’ scheme to extract more profit from our health care system and redirect it to middlemen who provide no care. Our state will not allow them to use audits as a weapon to batter independent pharmacies. David won against Goliath today.”
“Where there’s money to be made, there will inevitably be those willing to exploit an industry to maximize profit, and unfortunately, health care is not exempt,” said Attorney General Neronha. “This is precisely why my Office filed a lawsuit against three of the largest PBMs last year. We allege that these groups often exploit the complex scheme of pricing and payment for prescription drugs, and take a cut of ever-increasing drug prices at every step of the way. Here, we allege that Prime Therapeutics violated the law when they caused undue administrative burden and disruption to three independent Rhode Island pharmacies by showing up unannounced and demanding to see their books. This kind of behavior can drive up pharmacy costs, limit care choices, and harm local businesses if left unchecked. So, we checked it.”
Said Ron Lanton, who has represented local independent pharmacies as Government Affairs Director for Northeast Pharmacy Service Corporation, “We have been supporting independent pharmacies for a long time and are glad that they are starting to get the justice they deserve. These pharmacists give so much to their community and it’s great to see that Rhode Island sees their struggles against out-of-state PBMs.”
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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