NJ LEG pass AB 536, SB 1616 establishing new transparency standards for pharmacy benefits manager (PBM) business practices, amending various sections existing law.
Provisions
Defined necessary terms by adding to NJ LEG 17B:27F-1, anticipated loss ratio, brand-name drug, compensation, cost-sharing amount, network pharmacy and others.
Provided new section imposing licensing, registration on those acting as PBMs.
Licensing application requires disclosure of contracts with pharmacies, and so on.
Instructed insurance department to set minimum standards for PBM license.
Imposed good faith and fair dealing obligation on PBMs in all contractual duties.
Legislative History
On Jan. 11, 2022, bill introduced in Assembly; on Jun. 30, 2023, bill passed Assembly.
On Jun. 30, 2023, bill introduced in Senate; on Jun. 30, 2023, bill passed Senate.
On Jul. 10, 2023, NJ LEG reported hill SB 1616 was approved as PL 2023, Chap. 107.
Effectiveness
Bill will take effect on the first day of the eighteenth month next following the governor's approval and apply to contracts entered into after that date, Jan. 1, 2025.
