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High Impact

Massachusetts Bill Regulates Pharmacy Benefit Managers and Reimbursement Rates

Original title: An Act to ensure access to prescription medications

Last action · January 29, 2026: Accompanied a study order, see S2931Sponsors: Bruce Tarr and 1 other

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

This bill establishes new pricing transparency, reimbursement floors, and appeals processes for s operating in Massachusetts, requiring that drug reimbursement rates equal or exceed a pharmacy's acquisition cost and prohibiting retroactive discounts. It also mandates that MassHealth managed care organizations reimburse pharmacies at rates matching the MassHealth Pharmacy Provider Manual.

Why it matters

The measure changes financial and operational rules for pharmacies and s in Massachusetts, affecting drug reimbursement calculations, allowable list criteria, and contract transparency.

Background
  • Pharmacy benefits managers act as intermediaries between health insurance plans and pharmaceutical manufacturers, negotiating pricing and managing drug formularies. context
  • MassHealth is the state Medicaid and Children's Health Insurance Program (CHIP) for Massachusetts. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

pharmacies

Pharmacies receive new reimbursement protections, mandatory minimum payment floors tied to acquisition costs, and a formal appeals process for disputed drug prices.

Directly affected

pharmacy benefits managers

Pharmacy benefits managers must comply with updated cost-listing criteria, maintain frequent list updates, process appeals within strict timelines, and refrain from retroactive discounts.

Directly affected

MassHealth Managed Care Organizations and Accountable Care Organizations

These entities are required to reimburse pharmacies at the rates specified in the MassHealth Pharmacy Provider Manual.

Directly affected

pharmacists

Pharmacists are explicitly protected from contract clauses that prohibit them from disclosing treatment alternatives, cost shares, or pricing information to patients.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What criteria must a drug meet before being placed on a maximum allowable cost list?
The drug must be listed as 'A' or 'AB' rated in the FDA's , or possess an 'NR', 'NA', or similar rating, and have at least two therapeutically equivalent multiple source drugs or one generic drug available from national or regional wholesalers.
How long does a pharmacy have to appeal a drug cost determination?
A pharmacy must file its appeal within seven business days of submitting the initial claim for reimbursement.
Who is responsible for enforcing this legislation?
The Insurance Commissioner is charged with enforcing the act, promulgating regulations, and auditing s for compliance.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

6 actions
  1. Jan 29, 2026Senate
    Accompanied a study order, see S2931
  2. Dec 4, 2025SenateCommittee
    Bill reported favorably by committee and referred to the committee on Health Care Financing
  3. Aug 28, 2025Joint
    Hearing rescheduled to 04/29/2025 from 10:00 AM-01:00 PM in A-2 and Virtual<br> <span style="color: blue; font-style: italic;">Hearing updated to New End Time</span>
  4. Apr 23, 2025Joint
    Hearing scheduled for 04/29/2025 from 10:00 AM-02:00 PM in A-2
  5. Feb 27, 2025House
    House concurred
  6. Feb 27, 2025SenateCommittee
    Referred to the committee on Financial Services

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Shift Toward Enhanced PBM Transparency and Acquisition Cost Floors

The bill establishes strict requirements ensuring that pharmacy reimbursement matches or exceeds acquisition costs while prohibiting retroactive discounts.

Connected Entities

MassHealth, Insurance Commissioner, Bruce Tarr and 1 more
OrganizationMassHealth“State Medicaid program whose managed care and accountable care organizations are”Map →
PersonInsurance Commissioner“Charged with enforcing the Act and promulgating regulations”Map →
PersonBruce Tarr“Primary sponsor of Senate Bill No. 827”Map →
PersonPeter Durant“Cosponsor of Senate Bill No. 827”Map →

Sources

Open source document

malegislature.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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