To Mandate The Use Of Biosimilar Medicines Under Health Benefit Plans; To Require A Healthcare Provider To Prescribe Biosimilar Medicines; And To Improve Access To Biosimilar Medicines.
Summary
SB140 would create a new subchapter in Arkansas insurance law requiring health benefit plans to favor lower-cost biosimilar medicines and certain generic drugs when those products are available and cheaper than the reference product or reference listed drug. For newly initiated biological drug therapy, a healthcare provider would generally be required to prescribe a biosimilar medicine if one is available, subject to an appeal process for beneficiaries subject to step therapy protocols. The bill also requires health benefit plans to maintain and publicly post an up-to-date, easily accessible formulary showing covered drugs, tiering, and restrictions.
The bill further directs health benefit plans to place qualifying generic drugs and biosimilar medicines on formularies with more favorable cost sharing than the brand or reference product, and prohibits prior authorization, step therapy, or pharmacy restrictions that would make access harder than access to the reference product. These requirements apply only while the generic or biosimilar remains lower in wholesale acquisition cost than the reference product. The bill excludes the Arkansas Medicaid Program and certain other limited-benefit plans, and it allows insurers to discontinue coverage if a product is no longer medically appropriate or cost-effective. The act would take effect January 1, 2026.
Impact
SB140 would amend Title 23, Chapter 79 of the Arkansas Code by adding a new subchapter governing health benefit plans, formulary transparency, and coverage rules for generic and biosimilar drugs. It would affect private health insurers, HMOs, hospital and medical service corporations, self-insured governmental or church plans, and the State and Public School Life and Health Insurance Program through rulemaking authority. The bill would not apply to Arkansas Medicaid or several limited-benefit coverage types, and it preserves pharmacy practice authority while giving the Insurance Commissioner and State Board of Finance rulemaking power.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition from the legislative record included here. Based on the bill text alone, the measure appears designed to promote lower-cost prescription options and improve transparency, which suggests a consumer-cost and access-oriented policy approach. The absence of recorded action also means the overall legislative sentiment cannot be determined from the supplied materials.
Contention
The main policy tension in SB140 is between cost-control and clinical or administrative flexibility. Supporters would likely favor the bill’s push to steer patients toward lower-cost biosimilars and generics, reduce out-of-pocket costs, and limit insurer barriers such as prior authorization and step therapy. Potential opponents may object to the mandate that providers prescribe biosimilars when available, the restriction on insurer formulary management, and the possibility that automatic preference rules could interfere with individualized medical judgment or existing utilization controls. The bill partially addresses this by allowing appeals for step therapy cases and by permitting coverage decisions based on medical appropriateness or cost-effectiveness.