State Penalties
PBM Regulatory Penalties — All 50 States

PBM Regulatory Penalties — All 50 States

Pharmacy Benefit Manager regulations: spread pricing bans, rebate pass-through, fiduciary duties, and licensing enforcement.

Color-coded by maximum civil fine severity

Risk tier:HighMediumLow
StateTierLawCivil FineKey ProvisionsImprisonment
AlabamaLowSB 252 (Community Pharmacy Relief)$1,000/violation$10.64 dispensing fee; ALDOI enforcementN/A
AlaskaLowSB 132/SB 134$2,500/violation$20K license requiredN/A
ArizonaLowSB 1102 / DIFI$1,000/violationCease-and-desist authority4 months (Class 2 Misd.)
ArkansasHighAct 624 (Ownership Ban)$1,000/violation/dayLicense revocation for ownership violationsN/A
CaliforniaHighSB 40 (Insulin cap)$35M historic (DMHC)$35/month insulin copay cap6 months
ColoradoHighInsurance Commissioner$1,000/violation/dayRegistration denial/revocationN/A
ConnecticutHighInsurance Commissioner$100,000/violationFiduciary duty established Oct 2025N/A
DelawareMediumInsurance Commissioner$10,000/violationAuthority revocation possibleN/A
FloridaHighFL Office of Insurance Reg.$10,000/violation/daySpread pricing prohibitedN/A
GeorgiaMediumHB 690$10,000/act (willful)Private right of action establishedN/A
HawaiiMediumHB 2225$10,000/violationUnfair/deceptive acts enforcementN/A
IdahoLowID Code § 41-349Admin fines + license lossSpread pricing ban; 100% rebate pass-throughN/A
IllinoisLowInsurance CodeRegulatory actionDirector of Insurance enforcementN/A
IndianaMediumSB 140 / HB 1606$10,000 (3rd+ violation)$1K first; $2.5K second; license suspensionN/A
IowaLowSF 383Admin penalties + licenseFederal legal challenges ongoingN/A
KansasHighSB 360$100,000 (unlicensed)Strict licensing; cease-and-desistN/A
KentuckyLowSB 188 / 201 KAR 2:416$500 (late renewal)$10K registration fee; DOI enforcementN/A
LouisianaLowPBM Reform Act 2025$1,000/claimTreble damages; enforcement fundN/A
MaineHighLD 1580$5,000/day (unlicensed) + $500K marketSpread pricing ban; $500K market withdrawal penalty<1 year
MarylandMediumSB 896$10,000/violation$1K/day carrier penalties; restitutionN/A
MassachusettsHighEff. Jan 2026$25,000 (false reporting) + $5K/day10% surcharge on unlicensed operationsN/A
MichiganMediumPA 11 of 2022$20,000/month (suspended)License revocation; DIFS oversightN/A
MinnesotaHighDept. of Commerce$25,000/violation$10K/day unlicensed; fiduciary dutyN/A
MississippiHighHB 1672$25,000 (admin) + $1K/day generalBoard of Pharmacy enforcementN/A
MissouriHighSB 846/SB 363$5,000/violation/dayProbation up to 5 years; license revocationN/A
MontanaLowHB 740Insurance code violationsSpread pricing ban; retroactive denial banN/A
NebraskaLowLB 198 (eff. Jan 2026)$1,000/entity/violationSpread pricing ban; specialty pharmacy rightsN/A
NevadaLowSingle State PBMAdmin fines + registration revocationSpread pricing ban; transparency reportsN/A
New HampshireMediumSB 478/SB 547 (proposed)$10,000/violationFiduciary duty; gag clause banMisd./Felony possible
New JerseyHighS1300$10,000/day (non-compliance)$5K first; $10K subsequent; gross receipts recoveryN/A
New MexicoMediumPBM Regulation Act$1,000–$10,000/incidentSpread pricing ban; audit protectionsN/A
New YorkLowDFS oversight$1,000–$5,000/violationLicense suspension/revocationPerjury possible
North CarolinaMediumDept. of Insurance$500–$50,000/violationSpread pricing ban; rebate pass-throughN/A
North DakotaMediumHB 1584$10,000/vio ($50K subsequent)Enforcement fund; $1M financial responsibility bond5 years (Class C Felony unlicensed)
OhioHighORC 3959$1,000/violation/daySuperintendent license revocation30 days (4th degree misd.)
OklahomaLowPatient's Right to Pharmacy Choice$100–$10,000/violationLicense revocation; $50K–$500K surety bondsN/A
OregonMediumInsurance Code$10,000/violation$10K/day transparency reporting; cost growthN/A
PennsylvaniaHighAct 77 of 2024$100,000/violation ($1M/year cap)$50K unknown violations; $500K/year capN/A
Rhode IslandMediumS0222 / OHIC$10,000/violationNADAC + dispensing fee minimumN/A
South CarolinaMediumSC Dept. of Insurance$10,000/violation104% NADAC + dispensing fee; anti-steeringN/A
South DakotaLowSDCL 58-29ELicense revocation + damagesFee ban; anti-clawback; MAC list updatesN/A
TennesseeLowSB 881/HB 1244$250K cap removed — aggressiveTDCI consent orders; aggressive enforcementN/A
TexasLowSB 1122/SB 1354$1,000–$5,000Pharmacy appeal rights; cost + dispensing feeN/A
UtahLowHB 257Admin finesSpread pricing ban; drug synchronizationN/A
VermontHighDFR Licensure$100,000/violationSpread pricing ban; gag clause banLicense revocation
VirginiaMediumSCC Title 38.2$5,000/dayLicense revocation; private right of actionN/A
WashingtonLowRCW 48.200$5,000 (willful)$1K standard; OIC oversightN/A
West VirginiaMediumHB 3092 / OIC$20,000 (unlicensed) + $10K/violation100% rebate pass-through requiredN/A
WisconsinLowCole's Act / SB 203Admin fines + license revocationMedicaid dispensing fee; gag clause banN/A
WyomingLowWY PBM Act$1,000 (willful)2-year audit lookback; patient choiceMisdemeanor