By Ethan Faverino |

Arizona State Senator Janae Shamp (R-LD29) has introduced legislation to safeguard patients and local pharmacies from the growing influence of “corporate middlemen” in the prescription drug market.

Senate Bill 1545 prohibits pharmacy benefit managers (PBMs) from owning or holding any direct or indirect interest in retail pharmacies in Arizona. The bill addresses a fundamental conflict of interest that allows PBMs—mediators between insurers, drug manufacturers, pharmacies, and patients—to steer prescriptions to their affiliated pharmacies, under-reimburse independent competitors, drive up costs, and reduce patients’ choice.

“Arizonans deserve transparency and fairness in their prescription drug costs,” stated Senator Shamp. “PBMs were created to manage benefits — not to own pharmacies, control the rules, and profit off the entire system. PBMs were never meant to be both the referee and the player.”

PBMs control key aspects of prescription drug access, including which medications are covered, where prescriptions can be filled, and the reimbursement rates to pharmacies. When PBMs own pharmacies, they can prioritize their own outlets, quietly eliminate local and independent pharmacies, and inflate overall drug costs.

“This bill sends a clear message: our healthcare system exists to serve patients, not corporate profits,” added Shamp. “When the middleman becomes the gatekeeper, prices rise, choices narrow, and local pharmacies are pushed out. SB 1545 ends that self-dealing and puts patients back in control. This bill is about fairness, transparency, and making sure Arizona’s healthcare system works for families — not for corporate executives gaming the system behind closed doors.”

The legislation directs the Arizona State Board of Pharmacy to enforce compliance by revoking or refusing to renew any permits held in violation of this measure.

To protect patient access, the bill establishes safeguards for rare, orphan, or limited-distribution medications that might otherwise become unavailable. The Board is authorized to issue limited-service pharmacy permits in these cases and to convert existing permits as needed for a minimum of 90 days while assessing ongoing market availability. The measure also allows temporary extensions of pharmacy permits for facilities that provide critical services during pending sales to eligible buyers.

The legislation sets a phased implementation, beginning with an initial assessment of all active pharmacy permits as of July 1, 2026. At least 90 days before January 1, 2027, the Board must send written notice to any permit holders reasonably believed to be in violation, and affected pharmacies must then provide written notice to their patients and prescribing providers at least 60 days before the effective date of December 31, 2026.

Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.