SB 91: 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 is run by the Board of Community Health, which contracts with pharmacy benefits managers (companies that handle prescription drug benefits) to administer drug coverage. This bill adds a new section to state law saying that starting July 1, 2026, the board cannot enter into, execute, or renew a contract with any pharmacy benefits manager that owns or has an ownership interest in a retail pharmacy, or with any entity that itself contracts with or uses such a pharmacy benefits manager. The idea behind the restriction is to prevent pharmacy benefits managers from favoring their own affiliated pharmacies when managing the state plan's drug benefits. The bill specifically protects contracts already in place as of June 30, 2026, meaning existing agreements would not be broken by this new rule, only future or renewed contracts would be affected.

• Adds a new Code section (O.C.G.A. § 45-18-6.2) barring the Board of Community Health from contracting with pharmacy benefits managers that own or hold an ownership stake in a retail pharmacy.
• Extends that same ban to any legal entity that contracts with or uses such a pharmacy benefits manager, closing an indirect workaround.
• Sets the restriction to begin on July 1, 2026, giving the state and vendors over a year to adjust.
• Protects contracts already in effect as of June 30, 2026 from being disrupted by the new rule.

State employees and retirees covered by the State Health Benefit Plan, the Board of Community Health, and pharmacy benefits managers or affiliated companies that currently or in the future might seek state contracts while also owning retail pharmacies.

If enacted, the state's health plan would have to choose pharmacy benefits managers without ties to retail pharmacy ownership, which could change who administers prescription drug benefits for hundreds of thousands of state workers and retirees starting in mid-2026.

• Section 1 adds new Code section 45-18-6.2, prohibiting the board from entering, executing, or renewing contracts with pharmacy benefits managers that own or have an ownership interest in a retail pharmacy.
• The same section extends the ban to entities that contract with or use such pharmacy benefits managers, preventing indirect arrangements.
• Subsection (b) states the restriction does not apply to contracts already in existence as of June 30, 2026, so current agreements remain valid.
• The prohibition takes effect on July 1, 2026.
• Section 2 repeals any 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 drugs
• health insurance contracts
• Board of Community Health