Proposed Georgia Pharmacy Benefit Manager Bond

Georgia pharmacy benefit managers may be affected by new rules that were recently presented. The Georgia Office of the Insurance Commissioner suggested a new law enacted under SB 310 (2010) that requires pharmacy benefit managers to obtain a $100,000 surety bond from a state licensed surety company. Additionally, a minimum $250,000 errors and omissions insurance policy or “other appropriate liability insurance” is required. The surety bond protects individuals doing business with pharmacy benefit managers from fraudulent dealings. The surety has the option of canceling the bond with 30 days written notice.