ALBANY, N.Y. (NEWS10) - legislation reforms will bring transparency to pharmaceutical costs and allow consumers to make more well-informed choices about their healthcare. The legislation is intended to ensure consumers receive the best possible price on the cost of prescription drugs in addition to insurance premiums including deductibles, copayments, and coinsurance.
Governor Kathy Hochul has signed legislation that provides for licensure and registration of pharmacy benefit managers (PBM). PBMs, are companies that manage prescription drug benefits on behalf of health insurers. The bill will also enable the department of financial services to receive complaints when a PBM violates the law.
According to the bill it sets forth duties and obligations that PBMs must follow when performing services and allows the department of financial services to enforce the law and receive complaints from consumers, pharmacies, and healthcare providers. Required licensure of PBMs will ensure specified duties and obligations as service providers are met.
"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. "Navigating costs associated with medications and insurance can be difficult, so I am proud to sign this legislation to make it that much easier."
Officials say this landmark legislation will bring transparency and a comprehensive regulatory structure to otherwise unregulated PBMs. In Addition, further legislation will require licensure and registration of PBMs to abide by standards established by law and regulation.
