23 CAR § 146-113 – Penalties

(a) The penalty provisions under this section apply to PBMs administrating health benefit plans or for healthcare payors under Arkansas Code § 23-92-503(2) and (3) that are permitted to be regulated by the state and are not prohibited from state regulation under federal law.
(b) After notice and opportunity for hearing, the Insurance Commissioner may:
1. (1) Impose a penalty of up to five thousand dollars ($5,000) per violation against a PBM if the commissioner finds that the PBM has not:
  1. (A) Followed the process established for determining pricing or costs under the MAC List under Arkansas Code § 17-92-507;
  2. (B) Used the national average drug acquisition cost under Arkansas Code § 23-92-506(b); or
  3. (C) Complied with Arkansas Code § 23-92-506(b)(4)(A); or
2. (2) Revoke or suspend the license of a PBM if the commissioner finds that the PBM:
  1. (A) Has committed a pattern of violations of the Arkansas Pharmacy Benefits Manager Licensure Act, Arkansas Code § 23-92-501 et seq.;
  2. (B) Has not followed the process established for determining pricing and costs under the MAC List under Arkansas Code § 17-92-507; or
  3. (C) Has not used the national average drug acquisition cost under Arkansas Code § 23-92-506(b).
(c) Pursuant to Arkansas Code § 17-92-507, any violation of the Arkansas MAC law is also a deceptive and unconscionable trade practice under the Deceptive Trade Practices Act, Arkansas Code § 4-88-101 et seq., and a prohibited practice under the Trade Practices Act, Arkansas Code § 23-66-201 et seq.
(d) For all other violations of Arkansas Code § 17-92-507, Arkansas Code § 23-92-501 et seq., or this part, not otherwise provided for in this part, the commissioner may impose the penalties provided at Arkansas Code § 23-60-108 or § 23-66-210.