New Jersey Senate Bill S1390

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Failed: 2/27/24

Caption

Requires carriers to pass prescription drug savings to consumers.

Impact

The impact of S1390 on state laws revolves around its requirement for insurance carriers to adopt a more consumer-oriented approach when it comes to managing prescription drug costs. By legislating that any savings should be directly passed to the consumer, the bill seeks to alleviate some of the financial burdens faced by individuals purchasing prescription medications. The annual reporting requirement for carriers will also ensure accountability and compliance, potentially setting a precedent for similar regulations in the future.

Summary

Senate Bill S1390 aims to enhance consumer benefits by mandating that health insurance carriers pass on savings obtained from prescription drugs to the consumers. Specifically, the bill stipulates that all compensations negotiated by pharmacy benefits managers (PBM) with pharmaceutical manufacturers must be retained by the carriers. These savings are to be directly used to lower premiums for covered persons or to reduce their out-of-pocket costs at the point of sale. It emphasizes the importance of transparency in the financial transactions between pharmaceutical manufacturers and the insurance carriers.

Contention

Discussions related to S1390 might involve varying opinions from industry stakeholders. On one hand, proponents argue that this bill would enhance consumer protections and ensure that the financial benefits negotiated by PBMs are not kept solely by the insurers. Conversely, there may be concerns from insurance companies about the viability and financial implications of implementing such a mandate, suggesting that it could lead to increased operating costs or affect their profitability. The necessity of the bill's provisions in light of existing market dynamics will likely be a point of contention during discussions.