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6/11/2026
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Assembly OKs legislation that would require certificates of authority for pharmacy benefit managers
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STATE HOUSE — The General Assembly today approved legislation introduced by Sen. Peter A. Appollonio Jr. and Rep. Tina L. Spears that would require a form of licensing for pharmacy benefit managers. The bill is part of the Senate’s 17-bill package of healthcare legislation centered on supporting Rhode Islanders in crisis, protecting patients and providers, and strengthening the state’s health workforce. The measure now moves to the governor’s office.
The Pharmacy Benefit Managers Act (2026-S 3060B, 2026-H 8579A) would require pharmacy benefit managers to apply for a certificate of authority from the Department of Business Regulation to operate such a business in this state. It would also empower the health insurance commissioner to oversee all pharmacy benefit managers and penalize violations.
A pharmacy benefit manager, or PBM, is a third-party administrator that acts as a middleman between health insurers, drug manufacturers, and pharmacies. They manage prescription drug benefits, negotiate prices, process claims, and maintain lists of covered medications.
“Much of the activity of PBMs occurs without clear, regulatory oversight,” said Senator Appollonio (D-Dist. 29, Warwick). “Thirty-five other states already require some sort of licensing for PBMs, and this legislation fits in well with the other bills in the Senate’s healthcare package by focusing on affordability through accountability, because increased regulatory scrutiny often helps curb abusive pricing practices.”
“The healthcare crisis that we have today is greatly fueled by the cost of medication,” said Representative Spears (D-Dist. 36, Charlestown, Westerly, South Kingstown, New Shoreham). “Pharmacy benefit managers are a big part of the problem when it comes to driving up those costs. This bill creates standards and expectations for PBMs to bring about greater accountability and transparency in the process.”
Matthew Netto, associate state director for AARP Rhode Island, testified in support of the bill, telling the Senate Committee on Health and Human Services, “This step ensures that PBMs must follow clear, enforceable standards — just like insurers and other regulated entities. By empowering the Department of Business Regulation to oversee PBM practices and issue penalties for violations, the bill introduces a level of transparency and accountability that has been missing from the system.”
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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