New Jersey Senate Bill S323

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Establishes prescription drug pricing disclosure requirements and measures to reduce prescription drug costs.

Impact

The bill mandates that pharmacy benefits managers (PBMs) disclose crucial pricing information related to prescription drugs and require them to establish channels for consumer inquiries. It also obliges manufacturers and wholesale distributors to avoid excessive price increases—termed price gouging—without sufficient justification. If the price of an essential drug increases significantly, the Attorney General can investigate and require detailed reports from manufacturers concerning cost structures and justifications for price changes.

Summary

Senate Bill S323 aims to establish prescription drug pricing disclosure requirements and implement measures to reduce the costs of prescription drugs and biological products for consumers in New Jersey. The bill is designed to provide more transparency around drug pricing, specifically targeting essential off-patent and generic drugs. It defines 'essential off-patent or generic drug or biological product' based on availability, manufacturing restrictions, and public health designations, ensuring that price hikes on vital medications are scrutinized and regulated appropriately.

Contention

Notably, the bill has aimed to address the rising costs of prescription drugs which often impose a heavy burden on consumers, particularly in low-competition markets. Critics of the pharmaceutical industry emphasize the necessity of regulatory oversight to prevent exploitative practices, whereas some stakeholders within the industry express concerns about how these regulations could impact market dynamics and innovation. The establishment of a commission tasked with monitoring drug prices and potentially capping them introduces an additional layer of state intervention in pharmaceutical pricing, prompting debate over governmental versus market regulation.