In a defining moment for pharmacy care and patient access, the National Association of Chain Drug Stores (NACDS) commends the signing of House Bill 196 into law by Georgia Governor Brian Kemp. This vital step underscores Georgia’s leadership in confronting pharmacy benefit manager (PBM) abuses and signals a new era of accountability.
HB 196 reforms how Georgia’s State Health Benefit Plan and University System Benefit Plan reimburse pharmacies for self-administered drugs. Effective January 1, 2026, the law will require a transparent pricing model and set fair dispensing fees. The legislation also closes loopholes by prohibiting insurers from skirting these requirements through discount programs and arms the Insurance Commissioner with the authority needed to enforce these vital protections.
“This is a victory for Georgia’s patients and pharmacies, and a testament to the power of principled leadership,” said NACDS President and CEO Steven C. Anderson. “We extend our deep appreciation to Governor Kemp for signing this landmark bill, building on Georgia’s proud tradition of standing up to PBM middlemen. HB 196 directly confronts the manipulation that has driven up prescription costs and threatened Georgians’ access to trusted neighborhood pharmacies.”
Georgia’s decisive action arrives amid a groundswell of state-level PBM reform. In the past year alone, 24 states advanced 33 PBM reform bills, resulting in 74 policy changes aligned with NACDS priorities. Over the past four years, states have enacted 164 PBM laws — clear evidence of a nationwide movement. Importantly, HB 196 lays the foundation for even greater progress as Georgia legislators prepare to consider HB 810 in 2026, which would further address predatory PBM practices.
“Representative Trey Kelley deserves tremendous credit for his unwavering commitment to fair pharmacy reimbursement, championing this legislation in the House,” Anderson said. “We also extend our immense gratitude to Chairman Matt Brass for his leadership in guiding this important bill through the Senate, ensuring its passage.”
The enactment of HB 196 comes as federal scrutiny of PBM practices intensifies. In January 2025, the Federal Trade Commission released its second interim staff report, revealing that market-dominant PBMs marked up numerous specialty generic drugs by thousands of percent, generating over $7.3 billion in excess revenue from 2017 to 2022.
“The fight against PBM abuses is not a quick fix — it’s a sustained campaign that demands resolve at every level of government,” Anderson said. “NACDS is proud to stand alongside policymakers, the Georgia Pharmacy Association, and the Georgia Retail Association, who are all taking bold action to protect patients, pharmacies, employers, and communities across the state.”
