APA Encourages Truth Seeking on HB238 - the Fair Meds Act

March 8, 2024 
MONTGOMERY -On Wednesday, March 6, 2024, the Alabama House of Representatives Insurance Committee gave a unanimous favorable vote to HB238, the FAIR Meds Act, sending it back to the full House. The bill proposes to ensure fair reimbursement for Alabama pharmacies, safeguard access to pharmacy services for patients, provide truth and transparency in prescription drug pricing, and enhance free market competition. Since passing out of the Insurance Committee, the opposition to this legislation has begun a misinformation campaign to frighten the public and halt support in the legislature. 

Here are a few points of truth about HB238: 

This is not a tax. HB238 will require Pharmacy Benefit Managers (PBMs) to pay community pharmacies the cost of dispensing the prescription to a patient. That's it -nothing else. 

HB238 does not mandate any increased cost to patients/consumers-This legislation puts it on the PBM to pay fair reimbursement to the pharmacy. This bill only applies to commercial insurance plans and does not affect Medicare or Medicaid prescriptions. 

Pharmacists want full transparency on prescription costs and want to be able to talk with their patients without restrictions. HB238 will require PBMs to allow this. Why are PBMs fighting so hard to keep things secret? The more the way these middlemen operate is exposed, the clearer it is that lawmakers must address PBM abuses if they want to solve the access challenges patients are facing. Patients and employers deserve to know the truth. 

The payment model in HB238 is exactly what the State Medicaid Program has used since 2007, this is not a new concept. Their records show savings of over $53 million annually and no additional costs to patients. Alabama was the first state to implement index-based pricing and since then, the U.S. Government has mandated all states to follow in their Medicaid programs. 

This proposed legislation is not about pharmacies making more money. This is about access to pharmacy care for every Alabamian. Over 300 Alabama pharmacies have closed in the last six years due to unfair PBM practices. The ability of community pharmacists to serve their patients is being threatened. Don't get caught up in the misinformation and lies the opposition is spreading. 


The Alabama Pharmacy Association is a nonprofit professional organization with over 3,000 members statewide. The APA offers continuing education programs for pharmacists and pharmacy technicians, and members take a leading role in lobbying for pharmacy at the state and national level. The APA was established in 1881 and is the oldest professional organization for pharmacy in the state. APA members represent all practices of pharmacy and are committed to their profession and their patients. 

Media Inquiries: Leisa Johnson, Director of Communications & Marketing