Governor Kathy Hochul says a bill signed into law will bring a level of transparency to pharmaceutical costs in New York that hasn’t been seen in years. She says it will allow consumers to make well-informed choices about their healthcare, too.
The legislation provides licensure and registration of pharmacy benefit managers and sets forth duties and obligations that PBMs must follow when performing services.
“In the midst of a global public health crisis, it’s crucial that we take every opportunity to improve the health care system and reduce costs for New Yorkers,” Governor Hochul said. “This landmark law creates the most comprehensive regulatory framework in the country for Pharmacy Benefit Managers, increasing transparency for consumers and shedding light on the cost of prescription drugs. Navigating costs associated with medications and insurance can be difficult, so I am proud to sign this legislation to make it that much easier.”
Legislation S.3762/A.1396 requires licensure for pharmacy benefit managers and specifies their duties and obligations as service providers. This bill also allows the department of financial services to receive complaints when a PBM violates the law and will ensure PBMs abide by standards established by law and regulation.
“The Department of Financial Services stands ready to implement this historic legislation which has been a long-standing priority of the Department. The regulation of Pharmacy Benefit Managers represents the next important step in tackling the impacts of high prescription drug prices on consumers and health insurance premiums. We are proud that Governor Hochul has secured the most comprehensive PBM regulatory regime in the country and are confident we will finally bring needed reforms to this previously unregulated industry,” Acting Superintendent of Financial Services Adrienne Harris said.
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