Arizona Governor Signs Formulary Bill

Legislation impacting formulary management has been signed by Arizona Gov. Katie Hobbs (D). SB 1102 prohibits a PBM from limiting or excluding coverage of a prescription drug if the drug was previously approved during the plan year and an individual continues to be an enrollee of the plan. The bill also requires impacted enrollees and their prescribing provider to be notified at least 60 days in advance of formulary changes, including removal of a drug.

Patients must also be informed of the process for exceptions to a formulary change, as well as how drug denials are handled by the PBM. The new law goes into effect on Jan. 1, 2026.