New York Senate Bill S02393 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 2393--A 2023-2024 Regular Sessions  IN SENATE January 20, 2023 ___________ Introduced by Sens. JACKSON, HOYLMAN-SIGAL -- read twice and ordered printed, and when printed to be committed to the Committee on Insur- ance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to requiring individual and small group insurance carriers and group and blanket accident and health carriers to certify that at least a majority of prescription drug rebates are provided to patients at the point of sale The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 1 of subsection (e) of section 3231 of the insur- 2 ance law is amended by adding a new subparagraph (C) to read as follows: 3 (C) an insurer shall annually certify to the department that, during 4 the prior benefit year, the insurer made available to enrollees at the 5 point of sale at least a majority (i.e., greater than fifty percent) of 6 the rebates received by such insurer or any third party administering 7 prescription drug benefits on behalf of such insurer. 8 (i) For purposes of this paragraph, "rebate" means: 9 (1) negotiated price concessions including but not limited to base 10 rebates and reasonable estimates of any price protection rebates and 11 performance-based rebates that may accrue directly or indirectly to the 12 issuer during the coverage year from a manufacturer, dispensing pharma- 13 cy, or other party to the transaction, and 14 (2) reasonable estimates of any fees and other administrative costs 15 that are passed through to the issuer and serve to reduce the issuer's 16 prescription drug liabilities for the coverage year. 17 (ii) In providing the certification required under this subparagraph, 18 an issuer shall not publish or otherwise reveal information regarding 19 the actual amount of rebates the issuer received on a product-, manufac- 20 turer- or pharmacy-specific basis. Such information is protected as a 21 trade secret, is not a public record as defined in the public officers EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05427-03-3 
 S. 2393--A 2 1 law and shall not be disclosed directly or indirectly. An insurer shall 2 impose the confidentiality protections of this subparagraph on any third 3 parties or vendors with which it contracts that may receive or have 4 access to rebate information. 5 § 2. Subsection (b) of section 3221 of the insurance law is amended to 6 read as follows: 7 (b) (1) No such policy shall be delivered or issued for delivery in 8 this state unless a schedule of the premium rates pertaining to such 9 form shall have been filed with the superintendent. 10 (2) An insurer shall annually certify to the department that, during 11 the prior benefit year, the insurer made available to enrollees at the 12 point of sale at least a majority (i.e., greater than fifty percent) of 13 the rebates received by such insurer or any third party administering 14 prescription drug benefits on behalf of such insurer. 15 (A) For purposes of this paragraph, "rebate" means: 16 (i) negotiated price concessions including but not limited to base 17 rebates and reasonable estimates of any price protection rebates and 18 performance-based rebates that may accrue directly or indirectly to the 19 issuer during the coverage year from a manufacturer, dispensing pharma- 20 cy, or other party to the transaction, and 21 (ii) reasonable estimates of any fees and other administrative costs 22 that are passed through to the issuer and serve to reduce the issuer's 23 prescription drug liabilities for the coverage year. 24 (B) In providing the certification required under this subdivision, an 25 issuer shall not publish or otherwise reveal information regarding the 26 actual amount of rebates the issuer received on a product-, manufactur- 27 er- or pharmacy-specific basis. Such information is protected as a trade 28 secret, is not a public record as defined in the public officers law and 29 shall not be disclosed directly or indirectly. An insurer shall impose 30 the confidentiality protections of this subdivision on any third parties 31 or vendors with which it contracts that may receive or have access to 32 rebate information. 33 § 3. This act shall take effect immediately.