SENATE, No. 2438

STATE OF NEW JERSEY

218th LEGISLATURE

INTRODUCED APRIL 5, 2018

 


 

Sponsored by:

Senator  PATRICK J. DIEGNAN, JR.

District 18 (Middlesex)

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     Requires certain language prohibiting “gag clauses” in contracts between pharmacy benefits managers and pharmacists.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning pharmacy benefits managers and supplementing P.L.2015, c.179 (C.17B:27F-1 et seq.).

 

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

 

     1.    A pharmacy benefits manager shall include in any contract between the pharmacy benefits manager and a pharmacy, language that permits the pharmacy to disclose to a covered person lower cost prescription drug options, including those that are available to the covered person if the covered person purchases the prescription drug without using health insurance coverage.

 

     2.    This act shall take effect on the 90th day next following enactment.

 

 

STATEMENT

 

     This bill prohibits “gag clauses” by requiring a pharmacy benefits manager to include in any contract between the pharmacy benefits manager and a pharmacy in the State, language that permits the pharmacy to disclose to a covered person lower cost prescription drug options, including those that are available to the covered person if the covered person purchases the prescription drug without using health insurance coverage.

     Reportedly, some pharmacy benefits managers place “gag clause” provisions in contracts with pharmacies that prohibit pharmacists from disclosing to covered persons that the covered person’s health insurance copayment for a prescription drug exceeds the amount that the pharmacy would charge to persons who do not purchase the drug through their health insurance coverage. The bill would prohibit such “gag clauses” in those contracts.