BESSEMER, Ala.– In a historic step forward for patients and independent pharmacies across the state, Governor Kay Ivey signed Senate Bill 252 into law this morning, enacting the most significant pharmacy benefit manager (PBM) reform legislation in Alabama's history.
SB 252 was crafted to bring long-overdue transparency to prescription drug pricing, ensure fair reimbursement for pharmacies, and rein in abusive PBM practices that have contributed to rising drug costs and the closure of community pharmacies across the state.
"We applaud Governor Ivey and the members of the legislature who have made possible this major step forward for healthcare access and affordability in Alabama," said Tim Hamrick, CEO of American Pharmacy Cooperative, Inc. (APCI). "The state has recognized what patients and pharmacists have known for years: That PBMs have operated in the shadows for far too long. SB 252 brings those practices into the light and ensures that Alabamians—not corporate middlemen—come first."
SB 252 ties independent pharmacy reimbursement in commercial insurance plans to Alabama Actual Acquisition Cost (AAC)—a transparent, state-maintained pricing benchmark already used by Alabama Medicaid. The legislation protects patient access to local pharmacies and ensures that dispensing fees are paid by PBMs and insurers—and are not passed on to patients.
The bill passed both legislative chambers without opposition, with a 33-0 vote in the Senate and a 102-0 vote in the House. Such bipartisanship is rare in the Alabama legislature and points to the dire need for PBM reform in the state.
APCI also applauds the tireless work of its members and partners—including the Alabama Pharmacy Association (APA) and the Alabama Independent Pharmacy Alliance (AIPA)—for their persistent advocacy throughout the 2025 legislative session.
"This victory would not have been possible without the coordinated, grassroots efforts of independent pharmacists across the state who stood up, spoke out, and stayed engaged," Hamrick added. "Together, we've made it clear that Alabama won't tolerate business as usual when it comes to prescription drug pricing for both patients and independent pharmacy."
SB 252 has earned the support of healthcare providers, small business owners, patient advocates, and lawmakers from across the political spectrum. Passage of the bill puts Alabama among a growing number of states leading the way in holding PBMs accountable and restoring fairness to the prescription drug marketplace.
