New S.C. Pharmacy Benefits Manager Law Passes
On May 16, 2019, Governor McMaster signed bill
S.359 (Act No. 48), amending the South Carolina Code of Laws by adding Article 21 to Title 38, Chapter 71 (Accident and Health Insurance). Act No. 48 establishes, among other things, a license requirement for pharmacy benefits managers and authorizes the Department of Insurance to enforce the provisions of Article 21.
The provisions of
Section 38-71-2220 in Section 1 (gag clauses) and Section 3 (pharmacy audits, electronic records and documentation) of Act No. 48 took effect upon approval by the Governor.
All other provisions of Article 21 take effect on January 1, 2021, including the requirement for PBMs to obtain a license from the Department.
However, PBMs are currently licensed as Third-Party Administrators (TPAs) and should renew their TPA licenses during the next renewal period of February 1 - March 1, 2020.
Please see our TPA page for more information on obtaining that license. The Department will provide additional information at a later date regarding how to transfer from a TPA license to a PBM license.