SB91: SB91 State Employees' Health Insurance Plan; Board of Community Health from entering into, executing, or renewing a contract with any pharmacy benefits manager that owns or has an ownership interest in any retail pharmacy; prohibit

Georgia's state employees' health insurance plan (O.C.G.A. § 45-18) is run by the Board of Community Health, which contracts with pharmacy benefits managers (companies that manage prescription drug benefits) to administer prescription coverage for state workers. This bill adds a new Code section barring the board from entering into, executing, or renewing any contract with a pharmacy benefits manager that owns or has an ownership stake in a retail pharmacy, or with any company that itself contracts with or uses such a pharmacy benefits manager. The restriction takes effect July 1, 2026, and would not undo contracts already in place as of June 30, 2026. The bill's stated aim is to keep pharmacy benefits managers with ties to retail pharmacies from managing drug benefits for the state employee plan, addressing concerns that such ownership could create conflicts of interest in how prescriptions are steered or priced.

• Adds a new Code section (O.C.G.A. § 45-18-6.2) barring the Board of Community Health from entering, executing, or renewing contracts with pharmacy benefits managers that own or have an ownership interest in a retail pharmacy.
• Extends the same prohibition to any legal entity that contracts with or uses a pharmacy benefits manager with retail pharmacy ownership ties.
• Sets the restriction to begin on or after July 1, 2026.
• Protects contracts already in effect as of June 30, 2026 from being disrupted by the new rule.
• Repeals any other Georgia laws that conflict with this new restriction.

The Board of Community Health, which administers the state employees' health insurance plan; pharmacy benefits managers that also own retail pharmacies; and indirectly, state employees and retirees who receive prescription drug coverage through the plan.

State employees would keep their prescription coverage, but the companies managing that coverage could no longer have ownership ties to retail pharmacies once the rule takes effect in mid-2026, which could shift which vendors the state uses to administer drug benefits.

• Section 1 adds O.C.G.A. § 45-18-6.2, prohibiting the board from contracting with a pharmacy benefits manager that owns or has an ownership interest in a retail pharmacy.
• Section 1(a)(2) extends the ban to any legal entity that contracts with or uses such a pharmacy benefits manager.
• Section 1(b) exempts contracts already in existence on June 30, 2026 from being impaired by the new rule.
• The prohibition applies on or after July 1, 2026.
• Section 2 repeals conflicting laws.

1. 2026-03-18House Committee Favorably Reported By Substitute (House)
2. 2025-04-04House Withdrawn, Recommitted (House)
3. 2025-04-02House Committee Favorably Reported By Substitute (House)
4. 2025-03-10House Second Readers (House)
5. 2025-03-06House First Readers (House)
6. 2025-03-04Senate Passed/Adopted (Senate)
7. 2025-03-04Senate Third Read (Senate)
8. 2025-02-18Senate Read Second Time (Senate)

• Blake Tillery (R, SD-019)Primary sponsor
• Ben Watson (R, SD-001)
• Bo Hatchett (R, SD-050)
• Kay Kirkpatrick (R, SD-032)
• Russ Goodman (R, SD-008)
• Ricky Williams (R, SD-025)
• Frank Ginn (R, SD-047)
• Shawn Still (R, SD-048)
• Steve Gooch (R, SD-051)
• John Albers (R, SD-056)
• Carden Summers (R, SD-013)
• Lee Anderson (R, SD-024)
• Chuck Hufstetler (R, SD-052)
• Chuck Payne (R, SD-054)
• Drew Echols (R, SD-049)
• Sam Watson (R, SD-011)
• Max Burns (R, SD-023)
• Marty Harbin (R, SD-016)
• Matt Brass (R, SD-006)
• Greg Dolezal (R, SD-027)
• Mike Hodges (R, SD-003)
• Donzella James (D, SD-028)
• Derek Mallow (D, SD-002)
• Brandon Beach (R, SD-021)
• Billy Hickman (R, SD-004)
• Mark Newton (R, HD-127)

1. PassedSenate voteMarch 4, 2025

   52 yea, 2 nay (1 not voting, 1 absent)

   Passage: Senate Vote #141

• state employee health insurance
• pharmacy benefits managers
• prescription drug policy
• Board of Community Health