Kansas PBM Reform Bill Passage Praised by Commissioner

Published March 24th, 2026

Detected March 25th, 2026

Summary

Kansas Insurance Commissioner Vicki Schmidt praised the passage of SB 20, the Kansas Consumer Prescription Protection and Accountability Act. This new regulatory framework for pharmacy benefit managers (PBMs) aims to ensure fair and transparent practices, requiring drug rebates to be passed to patients and banning spread pricing. The bill now awaits the Governor's consideration.

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What changed

The Kansas Department of Insurance has announced the passage of SB 20, the Kansas Consumer Prescription Protection and Accountability Act, which establishes a new regulatory framework for Pharmacy Benefit Managers (PBMs). The bill, praised by Insurance Commissioner Vicki Schmidt, aims to increase fairness and transparency in PBM practices. Key provisions include requiring drug rebates to be passed through to health plans for the benefit of patients, banning the practice of 'spread pricing' where PBMs charge health plans more than they reimburse pharmacies, and ensuring pharmacies are reimbursed equally. The legislation also aims to protect patient choices and provide the Department of Insurance with tools for oversight.

This development signifies a significant regulatory shift for PBMs operating in Kansas. While the bill has passed the legislature, it awaits the Governor's consideration. Once enacted, PBMs will need to adjust their practices to comply with the new requirements, particularly concerning rebate pass-throughs and spread pricing. The Department of Insurance will gain enhanced oversight capabilities, suggesting increased scrutiny of PBM operations. Compliance officers should monitor the Governor's action and prepare for potential implementation of these reforms, which aim to protect consumers and local pharmacies.

What to do next

Monitor Governor's action on SB 20
Review PBM contracts for compliance with rebate pass-through and spread pricing bans
Prepare for potential increased oversight from the Kansas Department of Insurance

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Kansas Insurance Commissioner Vicki Schmidt hails passage of major PBM reform

Post Date: 03/24/2026 Kansas Insurance Commissioner Vicki Schmidt hails passage of major PBM reform

Topeka, Kan. – Kansas Insurance Commissioner Vicki Schmidt, today, praised the passage of SB 20, the Kansas Consumer Prescription Protection and Accountability Act. The Department drafted the act to establish a new regulatory framework for pharmacy benefit managers (PBM) that implements critical, commonsense reform to ensure PBM practices are fair and transparent. The bill passed the Kansas Senate 32-8 and the House of Representatives 104-17. It now heads to the Governor for consideration.

“This week, the Kansas Legislature chose to put patients over politics and profits,” said Commissioner Vicki Schmidt. “No longer will Kansas let PBMs threaten the pocketbooks of patients, the livelihoods of local businesses and the viability of rural communities.”

The Kansas Consumer Prescription Protection and Accountability Act requires drug rebates to be passed through to health plans, for the benefit of patients, and bans a practice called “spread pricing” where a PBM charges a health plan more than it reimbursed a pharmacy. The bill also aims to protect patient choices and local pharmacies by requiring all pharmacies to be reimbursed the same. Finally, it gives the Department of Insurance tools to ensure transparency and accountability.

“I am proud to have stood with the coalition of patients, pharmacists, businesses, communities and legislators who have helped pass this monumental reform to rein in PBMs and their predatory practices,” said Commissioner Vicki Schmidt.

A brief of the bill can be found here: https://www.kslegislature.gov/li/b202526/measures/documents/ccrbsb2001032326am.pdf.

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