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SB 271 DE
Passed Legislature

AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO PHARMACY BENEFITS MANAGERS.

DE · session 153 · Senate · bill

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Introduced Mar 26, 2026

Latest action (Jun 24, 2026) Passed By House. Votes: 40 YES 1 ABSENT

Summary

This bill strengthens procedural protections for pharmacies and consumers in Delaware by regulating pharmacy benefits managers. The bill establishes requirements for audits, including a requirement that pharmacy benefits managers provide notice at least 5 business days before an audit, limits audits to once every 12 months, and requires pharmacy benefits managers to bear all audit costs. The bill extends the appeal period for pharmacy reimbursement disputes from 10 days to 40 days and requires detailed explanations when appeals are denied. The bill also prohibits retaliation against pharmacists or pharmacies that report violations to government agencies, requires 60 days notice before contract changes, changes rebate reporting from quarterly to annual, and restricts the sharing of patient and prescriber information to affiliated pharmacies. The bill makes technical corrections to conform with Delaware drafting standards.

AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.

Official abstract

This Act strengthens procedural protections for pharmacies, pharmacists, and consumers related to regulation of a pharmacy benefits manager by doing all of the following: Adds definitions for the terms “chronic or long-term condition”, “net amount”, “purchaser”, “recoupment”, “similarly situated contracted pharmacy”, and “wholesale invoice audit.” Applies audit notice requirements uniformly and ensures access to an appropriate point of contact. Requires a pharmacy benefits manager to provide a list of records that the auditing entity seeks to audit at least 5 business days before an audit. Limits activities to once every 12 months and sets standards for wholesale invoice audits. Ensures audit costs are borne solely by the pharmacy benefits manager. Clarifies that a pharmacy can appeal the amount of any reimbursement and that a contracted pharmacy’s representative can take actions and receive notices related to appeals on behalf of a pharmacy. Extends pharmacies’ ability to appeal from 10 days to 40 days to account for entities that complete retroactive billing. When an appeal is denied, requires the parties to provide a detailed reason for the denial and specific information about how the pharmacy can appeal the denial to the Department of Insurance. Prohibits retaliation by a pharmacy benefits manager when a pharmacist or pharmacy discloses information to a government agency or during a proceeding if the person who disclosed the information had reasonable cause to believe that the disclosed information is evidence of a violation of a state or federal law. Requires that a pharmacy benefits manager must provide at least 60 days’ notice before amending a contract with a pharmacy or pharmacist. Clarifies that the prohibition against spread pricing applies to all purchasers contracting with pharmacy benefits managers. Changes the reporting requirements for rebates so that pharmacy benefits managers must file the required reports annually instead of quarterly. This change will reduce the amount of incorrect or unclear reporting because rebates are aggregated and reported at the end of the period of time under each contract. Amends national drug acquisition cost compliance to refer to the date of service. Prohibits pharmacy benefit managers from unit-of-use requirements inconsistent with smallest package size availability and manufacturer recommendations. Requires that pharmacy benefit managers may not require pharmacies to dispense therapeutically equivalent or alternative drugs that cost the enrollee more out of pocket than the prescribed drug except for medical reasons. Ensures that enrollee-identifiable or prescriber-identifiable information is not transferred to or shared with affiliated pharmacies for any commercial purpose other than those defined. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Sponsors (11)

Action history (8)

  1. Mar 26, 2026 Introduced and Assigned to Executive Committee in Senate · upper
  2. May 21, 2026 Reported Out of Committee (Executive) in Senate with 6 On Its Merits · upper
  3. Jun 9, 2026 Amendment SA 1 to SB 271 - Introduced and Placed With Bill · upper
  4. Jun 9, 2026 Amendment SA 1 to SB 271 - Passed By Senate. Votes: 20 YES 1 ABSENT · upper
  5. Jun 9, 2026 Passed By Senate. Votes: 20 YES 1 ABSENT · upper
  6. Jun 10, 2026 Assigned to Economic Development/Banking/Insurance & Commerce Committee in House · lower
  7. Jun 16, 2026 Reported Out of Committee (Economic Development/Banking/Insurance & Commerce) in House with 1 Favorable, 9 On Its Merits · lower
  8. Jun 24, 2026 Passed By House. Votes: 40 YES 1 ABSENT · lower

Full text

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