Pharmacists for Fair Reimbursement What your state's PBM laws actually mean for community pharmacies
State Tracker Updated June 15, 2026

Indiana: what the PBM reimbursement law requires

Effective January 1, 2026, Indiana requires commercial PBM reimbursement to be no less than the greater of the rate the PBM pays its own affiliated pharmacies or — for most independents — the national average drug acquisition cost (NADAC) plus the state Medicaid professional dispensing fee. Enforcement runs through the Department of Insurance.

Status Enacted
Law Senate Enrolled Act 140 (2025) — Indiana Code 27-1-24.6
Effective date Applies to policies or contracts issued, renewed, or amended after December 31, 2025 (effective January 1, 2026)
Reimbursement basis The greater of the PBM's affiliated-pharmacy rate or NADAC plus the Medicaid professional dispensing fee (acquisition cost plus a fair dispensing fee for liquor-permit pharmacies)
Professional dispensing fee Tied to the Indiana Medicaid professional dispensing fee / a commissioner determination of average cost to dispense; no fixed amount in statute
Appeal route Enforced via complaint to the Indiana Department of Insurance; no dedicated MAC appeal window in the act

Indiana’s Senate Enrolled Act 140 (2025) takes effect for commercial plan contracts on or after January 1, 2026. Reimbursement must be no less than the greater of the rate the PBM pays its own affiliated pharmacies, or — for pharmacies that do not hold a liquor permit (typically independents) — NADAC plus the professional dispensing fee from the Indiana Medicaid fee-for-service program. Pharmacies holding a liquor permit are floored at actual acquisition cost plus a “fair and reasonable” dispensing fee.

The dispensing-fee amount is set by reference to the Medicaid rate (and a commissioner determination of the average cost to dispense), not fixed as a dollar figure in the statute. Enforcement runs through complaints to the Indiana Department of Insurance rather than a dedicated MAC appeal window.

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