Rep. Rhyne files bill in North Carolina House to regulate pharmacy benefits managers

A new bill filed by State Rep. Rhyne seeks to regulate pharmacy benefits managers to promote fairness and transparency in their practices across North Carolina, according to the North Carolina State House.

The bill, filed as HB 163 on Feb. 21 during the 2025 regular session, was formally listed with the short title: ‘Pharmacy Benefits Manager Provisions.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill aims to regulate the practices of pharmacy benefits managers (PBMs) in North Carolina by prohibiting spread pricing and requiring uniform standards for specialty pharmacy accreditation. It mandates that PBMs cannot charge insurers more than they pay pharmacies and must calculate out-of-pocket costs based on net prices. The bill strengthens protections for pharmacies, barring PBMs from imposing certain fees, deriving revenue from pharmacies, or limiting pharmacies’ participation in networks without justification. It also enforces regular reporting by PBMs on drug costs and concessions and ensures the right of health plan beneficiaries to select their preferred pharmacy without facing penalties. Effective October 1, 2025, these measures apply to contracts issued, renewed, or amended on or after that date, enhancing transparency and fairness in pharmacy management practices.

Of the four sponsors of this bill, Cody Huneycutt proposed the most bills (11) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Rhyne graduated from the University of North Carolina at Chapel Hill in 1998.

Rhyne, a Republican, was elected to the North Carolina State House in 2024 to represent the state’s 97th House district, replacing previous state representative Jason Saine.