Brandon Shirley, Madison Hartman Harada & Thomas Abrams: Indiana limits pharmacy benefit manager vertical integration - The Indiana Lawyer
Indiana has enacted a law limiting vertical integration of pharmacy benefit managers (PBMs), prohibiting them from owning or controlling pharmacies or setting reimbursement rates that favor their own affiliated pharmacies. This affects PBMs and pharmacies in Indiana, aiming to increase transparency and competition.
Aforeworn detected this change in the Pharmacy & Controlled Substances space on July 28, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Independent pharmacies, retail chains, compounding pharmacies, and long-term-care pharmacies in Indiana, as well as PBMs operating in the state. should confirm how it applies to their specific situation before acting. There is a time constraint attached: The law takes effect July 1, 2024. Immediate review and adjustments should be completed before that date.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Pharmacy & Controlled Substances continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Indiana now prohibits PBMs from owning or controlling pharmacies and from using reimbursement rates that discriminate against non-affiliated pharmacies. This limits PBM vertical integration and requires fair reimbursement practices.
Who it affects
Independent pharmacies, retail chains, compounding pharmacies, and long-term-care pharmacies in Indiana, as well as PBMs operating in the state.
What you must do
Review PBM contracts to ensure compliance with the new law; adjust business relationships if your PBM owns or controls a pharmacy; ensure reimbursement rates are not discriminatory.
Deadline
The law takes effect July 1, 2024. Immediate review and adjustments should be completed before that date.
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