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, Act No. 2025-136, the
Alabama Pharmacy Benefits Manager Licensure and Regulation Act, Act No. 2019-457 as amended by Act No. 2021-341, and the
Pharmacy Audit Integrity Act, Act No. 2012-306.
Pursuant to Alabama PBM statutes, 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. Additionally, the Department investigates complaints and alleged violations of Alabama’s PBM laws. The goal of the PBM Compliance 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 in Alabama
The Pharmacy Benefit Manager (PBM) Compliance 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 Littlejohn Newman, Pharm.D., leads the PBM Compliance Division within the ALDOI. 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.
Dr. Newman 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. She also 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.
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.