Prohibit the use of spread pricing by pharmacy benefit managers

This bill prohibits pharmacy benefit managers (PBMs) from using "spread pricing," a practice where PBMs charge health plans more for prescription drugs than they pay pharmacies. It directly affects PBMs and health plans that contract with them. The bill defines allowable fees to ensure they don’t tie payments to drug prices, rebates, or patient costs, and requires PBMs to act in the health plan’s best interest. It also increases licensing fees for PBMs and limits their income sources to prevent profit-driven pricing models.