Monday, November 30, 2020

Reminder: Pharmacy Benefit Managers (PBMs) License

Application Deadline is Tuesday December 1, 2020

This notice serves as an urgent reminder to companies offering PBM services in South Carolina. The law that requires pharmacy benefit managers to convert their license to a PBM license was enacted in May 2019 and becomes effective January 1, 2021.

The regulation that implements this law was enacted in June of this year. The SCDOI then issued a bulletin to provide guidance to the industry on the license application process and timeline on September 15, 2020.

The deadline for applying for a PBM license is tomorrow, Tuesday, December 1, 2020.

We have made every attempt to provide ample notice to the industry of this license transition. Because the law goes into effect January 1, we must have sufficient time to review applications and issue licenses in advance of that deadline.

Those applications received after December 1, 2020 are not guaranteed a license by January 1, 2021 and the PBM would be unable to operate from the period of January 1, 2021 until their license is issued.

As Bulletin 2020-10 notes, your application must be submitted no later than December 1, 2020 to be licensed by the January 1, 2021 legal deadline.

The Office of PBM Oversight can answer any questions PBMs may have regarding the application materials or process. You may reach the Office of PBM Oversight by phone (803-734-0398) or email (PBMDept@doi.sc.gov).

We encourage PBMs to review our PBM webpage at www.doi.sc.gov/pbm for detailed application instructions.