Kelly signs law strengthening oversight, regulation of pharmacy middlemen

Gov. Laura Kelly signed a bill on April 9, 2026, regulating pharmacy benefit managers, the middlemen in the pharmaceutical industry. (Photo by Sherman Smith/Kansas Reflector)

TOPEKA – Gov. Laura Kelly signed a bill regulating companies that operate as middlemen in the pharmaceutical industry, demanding transparent transactions and guardrails to protect consumers and pharmacists. 

Senate Bill 20 regulates pharmacy benefit managers, which negotiate drug prices between manufacturers, pharmacies and insurers. The companies have come under scrutiny in recent years for monopolistic practices, driving up prices and for practices that harm small, independently owned businesses. 

“Increasing regulation of PBMs is a critical, necessary step towards lowering costs for Kansans and ensuring that their health needs and best interests are put first,” Kelly said in a news release.

Senate Minority Leader Dinah Sykes, D-Lenexa, said more than 100 local Kansas pharmacies closed in the past decade.

“This bill will increase transparency and accountability within our pharmaceutical industry, ensuring Kansans and locally owned pharmacies are not being priced out of their life-saving medications or the pharmaceutical market,” she said.

SB 20 gives the Kansas insurance commissioner increased authority to regulate PBMs, mandates drug rebates pass through to health plans, and bans spread pricing so PBMs can no longer charge health plans more than they reimburse pharmacies.