Legislation sponsored by Assembly Democrats Craig Coughlin, Raj Mukherji, Daniel Benson, Joann Downey and Eric Houghtaling to ensure pharmacy benefits managers are vetted by New Jersey Department of Banking and Insurance before operating in the state was approved Thursday by the Assembly.
The bill (A-4676), entitled the "Prescription Drug Patient Protection Act," requires pharmacy benefits managers to obtain, in accordance with the bill's provisions, a certificate of authority form the Commissioner of Banking and Insurance in order to operate in this state.
A pharmacy benefit manager (PBM) is a third-party administrator of prescription-drug programs for end payers, such as private insurers, and Medicare Part D plans. The sponsors of the bill note a number of complaints about PBMS driving up costs and the purpose of this bill is to provide transparency, accountability and potentially lower costs to consumers.
"The state must ensure patient protection when dealing with third-party pharmacy benefit managers," said Coughlin (D- Middlesex). "With the rise in the cost of healthcare and the price of prescriptions, we must do all that we can to ensure residents are not being taken advantage of by anyone raising the prices of the prescriptions they need unnecessarily."