Arizona Pharmacy Benefit Managers Licensing Requirements
Effective January 4, 2026, Arizona will require Pharmacy Benefit Managers (PBM) to be licensed to operate in the state. General initial and renewal requirements are below.
A person must be licensed to operate as a PBM in Arizona.
- Applicants must:
- Submit the Director-prescribed certificate of authority application electronically, and pay a fee.
- The Department deems the application as filed with the Director when the Department receives a completed application and the required fee.
- The Director may require applicants to submit information for principals, principal officers, and individuals responsible for the conduct of the PBM's activities that discloses:
- Biographical information;
- Employment and business financial history;
- Criminal activity;
- Fingerprints, or any other information that relates to the ability to operate as a PBM.
- Applicants will have a period to remedy licensure disqualifications.
- If the Director determines that an applicant is not qualified for licensure after the overall application time frame is complete, the Director must: provide written notice of the intent to deny the application; and specify the licensure disqualifications.
- The applicant has 60 days from the date of the Director's notice to advise the Director that it has remedied the disqualifications.
- The Director will deny the application if:
- The applicant fails to respond to the Director within 60 days; or
- The Director determines that the applicant has failed to remedy the disqualifications.
- The application denial is an appealable agency action.
- The Department must notify an applicant of:
- The approval of the certificate of authority; and
- The effective date and expiration date of the certificate.
- No paper certificate is required.
- Within 30 days of any material modification of the application information, a PBM who holds a certificate of authority issued by the Department must file a Notice of Modification. The Notice of Modification must be filed in the Director-approved form and manner.
- The PBM certificate of authority is a biennial certificate.
- If the PBM fails to timely file a complete renewal application and pay the fee, the certificate of authority expires on the last day of the 24th month after the effective date of the initial approval or renewal.
- If not timely renewed, a certificate of authority may expire during any suspension or restriction period.
- PBMs are subject to the renewal requirements below.
- To renew its certificate of authority, a PBM must:
- File a renewal application electronically on the
- Director-prescribed form; and
- Pay the fee on or before the PBM's certificate of authority
expiration.
- The Director may require renewal applicants to submit information for principals, principal officers, and individuals responsible for the conduct of the PBM's activities that discloses:
- Biographical information;
- Employment and business financial history;
- Criminal activity;
- Fingerprints; or
- Any other information that relates to the ability to operate as a PBM.
- The Department deems the renewal application as filed with the Director when the Department receives a completed renewal application and the required fee.
- Upon expiration of a certificate of authority that is not timely renewed, a PBM must cease its PBM operations.
- A PBM whose certificate of authority has expired must file a new certificate of authority application with the Director.
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