ASSEMBLY, No. 3734

STATE OF NEW JERSEY

212th LEGISLATURE

INTRODUCED NOVEMBER 20, 2006

 


 

Sponsored by:

Assemblyman KEVIN J. O'TOOLE

District 40 (Bergen, Essex and Passaic)

 

 

 

 

SYNOPSIS

†††† Requires that SHBP prescription drug plan use bulk purchasing.

 

CURRENT VERSION OF TEXT

†††† As introduced.

††


An Act concerning State Health Benefits Commission contracts for prescription drug benefits and supplementing P.L.1961, c.49 (C.52:14-17.25 et seq.).

 

†††† Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

†††† 1.† The State Health Benefits Commission shall ensure that every contract purchased or renewed by the commission on or after the effective date of P.L.††† , c.††† (C.††† ) (pending before the Legislature as this bill), to provide drug prescription benefits, or to authorize the purchase of a contract or contracts to provide drug prescription benefits, pursuant to section 5 of P.L.1961, c.49 (C.52:14-17.29), shall provide for the utilization of bulk purchasing of pharmaceutical drugs to the extent appropriate and feasible.† A drug prescription benefit contract shall require that failure to utilize bulk purchasing of pharmaceutical drugs shall be documented, justified, and reported to the commission.† The commission shall, within 30 days of receiving such a report, conduct its own review thereof and transmit its findings to the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly and the Minority Leader of the General Assembly.

 

†††† 2. This act shall take effect immediately.

 

 

STATEMENT

 

†††† This bill requires that the State Health Benefits Commission, when it contracts to provide drug prescription benefits with a pharmacy benefits manager, or authorizes a health care benefits administrator to contract with a pharmacy benefits manager, to utilize bulk purchasing of pharmaceutical drugs to the extent appropriate and feasible.† Any drug prescription benefit contract would require that failure to utilize bulk purchasing of pharmaceutical drugs be documented, justified, and reported to the commission. †The commission would then have 30 days to conduct its own review of such a report and transmit its findings to the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly and the Minority Leader of the General Assembly.†

†††† The billís provisions are based upon testimony and other information received by the sponsor in his capacity as a member of the Joint Legislative Committee on Public Employee Benefits Reform.† The provisions would apply to any contract purchased or renewed by the commission on or after its effective date.