An Act to enact the pharmacy benefit manager compensation reform

This bill creates a new chapter in Massachusetts law to regulate how pharmacy benefit managers (PBMs) are compensated by health insurance companies. It defines PBMs as entities that negotiate drug prices and manage prescription drug benefits for insurers, while requiring their fees to be limited to the actual value of the services they provide. The legislation also establishes duties for PBMs to act with transparency and fairness in the best interests of patients and insurers, and it introduces specific definitions for terms like rebates and price protection to ensure clarity in financial arrangements. By setting these standards, the bill aims to increase oversight and accountability within the pharmacy benefit management industry.