New legislation will require pharmacy benefit managers in New York to register with the state and obtain a license by 2023, Bloomberg Law reported.
The legislation — S.3762/A.1396 — signed by Gov. Kathy Hochul Dec. 31, aims to improve transparency surrounding prescription drug costs and establishes a set of duties and obligations PBMs must follow when performing services, according to a news release. It also enables the department of financial services to enforce the law and receive complaints of PBM violations.
"This landmark law creates the most comprehensive regulatory framework in the country for pharmacy benefit managers, increasing transparency for consumers and shedding light on the cost of prescription drugs," Ms. Hochul said. "Navigating costs associated with medications and insurance can be difficult, so I am proud to sign this legislation to make it that much easier."
PBMs largely operate without regulation, with the bill marking the first such legislation in the country.