Governor Hogan's Signing of Maryland Law Affirms Critical Role of PSAOs and Support for Independent Pharmacies

May 12, 2022

Arlington, Va. — The Healthcare Distribution Alliance (HDA) issued the following statement today from President and CEO Chester “Chip” Davis, Jr., regarding the signing of SB 823 by Maryland Governor Larry Hogan.

“The signing today of SB 823 by Governor Hogan allows pharmacy services administrative organizations (PSAOs) to continue providing the critical support independent pharmacies rely on to serve patients in communities across the state of Maryland.

“Independent pharmacies, which are essential to ensuring Maryland patients have access to care, rely on PSAOs to navigate the complexities of healthcare red tape, such as contracts with pharmacy benefits managers (PBMs), reimbursement claims and audits. PSAOs are voluntary organizations that independent pharmacies choose to contract with to help them manage these ‘back-office duties’— ultimately empowering pharmacists to spend more time at the patient counter. PSAO services are offered at a reasonable, transparent fee, and they do not impact pharmacy or prescription medication pricing.

“In addition to Governor Hogan, HDA thanks the House and Senate bill sponsors Delegate Kelly and Senator Kramer and the Maryland Insurance Administration for their leadership and support of the law.” 

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About HDA

The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors — the vital link between the nation’s pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA’s nonprofit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.