"New Jersey Pharmacy Audit Bill of Rights;" establishes procedures by which entities are required to conduct audits of pharmacies.
Impact
Also significant is the bill's stipulation that clerical errors, such as typographical mistakes, shall not automatically imply fraud, thereby protecting pharmacies from unjust penalties for minor discrepancies. Additionally, recoupment of funds for errors will only be allowed when overpayments are substantiated. This approach is designed to encourage compliance without unnecessarily punishing pharmacies for honest mistakes, leading to a more positive relationship between pharmacies and auditing entities.
Summary
The New Jersey Pharmacy Audit Bill of Rights, represented by Bill S1520, seeks to establish a structured and fair procedure for the auditing of pharmacies. Central to this legislation is the requirement for auditing entities to notify pharmacies at least 14 days before conducting an audit, ensuring that pharmacies have ample time to prepare. The bill limits the scope of audits, stating that no more than 100 prescriptions may be audited in a single session and no more than 200 in any twelve-month period. This aims to provide a reasonable approach to managing the auditing process while reducing the administrative burden on pharmacies.
Contention
However, the bill does not apply to investigative audits triggered by suspected fraudulent activities, leaving room for debate about its limits. Critics argue that while it protects against undue punishment for clerical errors, it may not adequately address the systemic issues within pharmacy audits. Opponents may voice concerns that the exclusions for fraud investigations could allow malpractices to continue unchecked, while supporters believe that this balance is essential for fair operational practices in the pharmacy sector.
Provisions
Ultimately, the bill assigns the Commissioner of Banking and Insurance as the enforcer of these new regulations, granting them the authority to investigate violations and impose penalties for non-compliance. As such, S1520 aims to reshape the landscape of pharmacy audits in New Jersey, advocating for clearer guidelines and protections that foster an environment of accountability without compromising fairness.
Restricts audits of pharmacists conducted by insurers and their intermediaries, limiting audits to one per year unless an identified problem exists or fraud or misrepresentation is suspected.