New York Assembly Bill A03554 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 3554 2025-2026 Regular Sessions  IN ASSEMBLY January 28, 2025 ___________ Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit- tee on Governmental Operations AN ACT to amend the civil service law, in relation to state contracts for the services of pharmacy benefit managers under health insurance plans for state officers and employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The civil service law is amended by adding a new section 2 162-a to read as follows: 3 § 162-a. Procurement of pharmacy benefit manager services. 1. 4 Notwithstanding the provisions of this article or article eleven of the 5 state finance law, if the state enters into a private contract for a 6 pharmacy benefits manager, the president shall procure and enter into a 7 contract for the services of a pharmacy benefits manager in connection 8 with health insurance benefits under this article in accordance with a 9 reverse auction process as provided for in this section, and pursuant to 10 rules and regulations to be promulgated by the president, in consulta- 11 tion with the state comptroller. 12 2. In consultation with the technology platform vendor selected under 13 subdivision six of this section, the president shall specify the terms 14 of a participant bidding agreement that all bidders must accept as a 15 prerequisite for participation in the reverse auction process, includ- 16 ing: 17 (a) common definitions; 18 (b) prescription drug classifications; 19 (c) retail pricing rules, including maximum allowable cost price lists 20 and dispensing fees; and 21 (d) any other contract terms the president deems necessary to further 22 the purpose of this section. 23 3. A pharmacy benefit manager who submits a bid under this section 24 shall provide the president access to complete pharmacy claims data EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07473-01-5 
 A. 3554 2 1 necessary for the president to conduct the reverse auction and to carry 2 out administrative and management duties. 3 4. The terms of a contract entered into under this section shall not 4 be modified by the pharmacy benefit manager except with the approval of 5 the president. 6 5. The president may structure the contract awarded under this section 7 to pay the cost of the technology platform and the associated profes- 8 sional services contracted for under this section by assessing a fee per 9 prescription to be paid directly by the pharmacy benefit manager to the 10 technology platform vendor. 11 6. At least three months before the reverse auction process is sched- 12 uled to be completed, the president shall procure through a competitive 13 bidding process a contract with a professional services vendor for a 14 technology platform and any associated professional services necessary 15 to operate the platform to evaluate the qualifications of prospective 16 pharmacy benefit manager bidders for the pharmacy benefit manager 17 procurement and host and conduct an online automated reverse auction as 18 required by this section. 19 7. For the purposes of this section: 20 (a) "Pharmacy benefit manager" shall have the same meaning as set 21 forth in section two hundred eighty-a of the public health law; and 22 (b) "Reverse auction" means an automated bidding process conducted 23 online that starts with an opening price and allows qualified bidders to 24 counteroffer a lower price for multiple rounds of bidding. 25 § 2. This act shall take effect immediately.