Strict new regulations on pharmacy middlemen aim to lower prescription drug costs
Bipartisan legislation bans spread pricing and mandates transparent reimbursement rates to protect patients, alongside 10 other new state laws.
TOPEKA, Kan. — Sweeping new regulations on the middlemen who negotiate drug prices between manufacturers, pharmacies and insurers will soon take effect in Kansas to lower prescription costs. Gov. Laura Kelly signed bipartisan legislation April 9, 2026, placing new guardrails on pharmacy benefit managers (Senate Bill 20).
The measure grants the Kansas Insurance Commissioner increased authority to regulate the industry, mandates that drug rebates pass through to health plans and ensures all pharmacies are reimbursed using the National Average Drug Acquisition Cost. It also explicitly bans spread pricing, a tactic where middlemen charge health plans more than they reimburse pharmacies, pocketing the difference.
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