ATTENTION***The Pharmacy Benefit Manager (PBM) Compliance Division of the Alabama Department of Insurance is seeking proposals from
Respondents with expertise in pharmacy reimbursement, pharmacy claims, and pharmacy/PBM compliance for a plan to intake,
review, and respond to complaints related to PBM compliance as it relates to Alabama law. For more information regarding
the solicitation can be found on the Alabama STAARS Public Access page, found
here: Alabama's Vendor Self Service
The Pharmacy Benefit Manager (PBM) Compliance Division of the Alabama Department of Insurance is responsible for
administering and enforcing Alabama’s PBM laws, including the Community Pharmacy Relief Act (SB252), enacted by the
Alabama Legislature in 2025.
Pursuant to SB252, the Department is authorized to license PBMs operating in Alabama and to oversee compliance with all applicable
statutory requirements, including reimbursement standards, audit practices, and reporting obligations. The law also affirms the
Department’s authority to enforce the Pharmacy Audit Integrity Act of 2012.
The PBM Compliance Division investigates complaints and alleged violations of Alabama’s PBM laws. The goal of the PBM Division is
to promote, preserve, and protect the public health, safety, and welfare through effective regulation and licensure of PBMs.
- PBM Licensure - The Initial PBM application must be completed and filed along with copies of the applicant’s corporate charter, articles of incorporation, or other charter documents.
- PBMs Licensed with ADOI
The Alabama Department of Insurance welcomes Kelli Littlejohn Newman, Pharm.D., to lead the Department’s newly established Pharmacy
Benefit Manager (PBM) Compliance Division, effective December 16.
The Division was created to ensure full compliance with the requirements of the Community Pharmacy Relief Act, passed as SB252 in the
2025 Legislative session and signed into law by Gov. Kay Ivey.
“Kelli’s remarkable leadership in the pharmacy space and her dedication to public service make her an invaluable asset to the people of
Alabama. Her decades of experience will be instrumental in leading the PBM Compliance Division and ensuring Alabama’s continued
leadership in PBM transparency and accountability. We are excited that she is coming on board,” Commissioner Mark Fowler said.
Fowler continued, “Kelli will be handed the keys to the department’s PBM Compliance program and asked to make it work as the Alabama
Legislature has directed. Additionally, she will serve as a subject matter expert on all things PBM both internally and externally to
all stakeholders, including representing the department and the state of Alabama as national policy on PBM regulatory issues is developed.”
Dr. Newman brings more than two decades of experience in pharmacy practice, healthcare administration, and state government leadership.
She most recently served as Senior Director of Clinical Services at the Alabama Medicaid Agency, where she managed and administered
the state’s multi-billion-dollar pharmacy, Durable Medical Equipment (DME), and Medical Quality Review (MQR) programs, serving more
than one million Alabamians.
During her tenure at the Alabama Medicaid Agency, Dr. Newman played a central role in shaping state and federal policy, advancing transparency in pharmacy reimbursement, and overseeing initiatives that improved patient access and safety.
She was instrumental in developing and implementing Alabama’s groundbreaking transition to a transparent, acquisition-based drug pricing model, the first of its kind in the nation and which has since been adopted as the federal standard required of all state Medicaid programs.
Dr. Newman has worked closely with the Alabama Legislature on Medicaid budget and policy matters, served on the State Legislature’s PBM Taskforce, and brings extensive experience in drug rebate negotiations, pharmaceutical contracting, and compliance oversight.
“It has been one of the greatest honors of my career to serve the Alabama Medicaid Agency and the citizens of our state for over two decades. I am deeply grateful for the opportunity to continue serving Alabama in this new capacity with the Department of Insurance,” she said.
“The implementation of PBM compliance under SB252 marks an important step toward transparency, fairness, and accountability within our state’s healthcare system. I look forward to working with Commissioner Fowler, state leadership and all stakeholders to ensure full compliance with the law, promote transparency, safeguard the integrity of the system, and ensure that Alabamians receive fair and safe access to care,” Dr. Newman continued.
Dr. Newman earned her Doctor of Pharmacy degree from the University of Arkansas for Medical Sciences College of Pharmacy and a Bachelor of Science in Pharmacy from the Auburn University Harrison College of Pharmacy.
Dr. Kelli Littlejohn Newman will join the Alabama Department of Insurance to lead the PBM Compliance Division.