New York state has introduced new regulations aimed at curbing the practices of pharmacy benefit managers, including divisions of CVS Health, Cigna Group and UnitedHealth Group, Bloomberg reported Nov. 20.
The rules, which take effect later this month, are designed to increase transparency and competition in the prescription drug market. Additionally, PBMs will be prohibited from directing patients to their own affiliated pharmacies and must allow local pharmacies to offer mail-order and home-delivery services.
Adrienne Harris, superintendent of the New York State Department of Financial Services, explained to the news outlet that the original intent of PBMs was to lower costs for consumers, but the industry's increasing vertical integration has led to higher costs and less competition.
While the Pharmaceutical Care Management Association, a PBM trade group, argued that the new rules would raise costs, Ms. Harris emphasized that the regulations were designed to balance industry practices with consumer interests.
The state also plans to step up enforcement actions against PBMs that engage in unfair or deceptive practices.