S 2690 S 2727 A 3993 A 2214

Prohibits pharmacy benefits managers from engaging in “clawback” and “gag clause” practices.

NJEA supports S-2690/S-2727/A-3993/A-2214 (Ruiz, Cryan, Beach, Turner, McKeon, Dancer, Andrzejczak, Land).  This legislation would prohibit pharmacy benefits managers (PBMs) from engaging in “clawback” and “gag clause” practices.  It also requires the Commissioner of Health to develop a public information campaign in the state to inform consumers about their rights concerning the cost of paying for prescription drugs.

Under some insurance plans, copayments for some prescription drugs can be higher than the cost of the drug without insurance.  Under this bill, a pharmacy benefits manager cannot charge an individual the higher insurance copayment.  Furthermore, some PBMs did not allow pharmacists to tell individuals that the drug would be cheaper if purchased without health insurance coverage.  This bill also makes that practice illegal.

This bill ensures that individuals do not overpay for their prescriptions.  This bill helps both consumers and insurance companies save money.

NJEA asks that you support this bill.

Text of bill S-2690 (Please note that S-2727 is identical to S-2690)

Text of bill A-3993  (Please note that A-2214 is identical to A-3993.)


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