Lexology February 19, 2025
Massachusetts has passed a new state law that requires pharmacy benefit managers (PBMs) to get a license from the Massachusetts Division of Insurance no later than January 1, 2026. Initial PBM licenses are good for three years and are renewable in subsequent three-year increments. Both initial and renewal licenses come with a $25,000 fee.
The new state law also establishes significant penalties for PBMs in certain circumstances. PBMs that fail to obtain or renew state licenses as required, violate other state PBM laws, cause multiple consumer complaints, or commit fraud are all subject to punishment by state insurance regulators. For instance, a PBM that operates without the requisite license or violates other state PBM laws is subject to a $5,000...
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