Downey and Houghtaling's Prescription Drug Patient Protection Act

(TRENTON) – Legislation sponsored by 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 64-2 Monday by the Assembly, giving it final legislative approval.

The bill now goes to the governor.

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.

“Prescriptions drug prices continue to escalate in the country,” said Downey (D-Monmouth). “Residents who need life-saving medications should not be subject to extra costs imposed as a result of having to work with a third-party pharmacy benefits manager. The state should also be aware of every PBM that operates in this state and how they deal with New Jersey patients.”

“The state must ensure that nothing impedes patient access to the medications required by their doctor,” said Houghtaling (D-Monmouth). “This legislation would provide increased transparency and accountability for all pharmacy benefit managers operating in this state. It is critical to patient protection in New Jersey.”