SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 526

with committee amendments

STATE OF NEW JERSEY

DATED:  JANUARY 27, 2020

     The Senate Commerce Committee reports favorably and with committee amendments Senate Bill No. 526.

     This bill makes certain findings and declarations concerning the rising cost of insulin and requires health benefits plans issued pursuant to the New Jersey Individual Health Coverage and Small Employer Health Benefits Programs, the State Health Benefits Program, and the School Employees’ Health Benefits Program, to provide coverage for insulin for the treatment of diabetes.  The bill further requires health insurers (health, hospital and medical service corporations, commercial individual and group health insurers, and health maintenance organizations) and health benefits plans issued pursuant to the New Jersey Individual Health Coverage and Small Employer Health Benefits Programs, the State Health Benefits Program, and the School Employees’ Health Benefits Program to provide coverage for the purchase of insulin that is not subject to any deductible and to limit the copayment or coinsurance that may be required for an insulin prescription to $50 per 30 day supply of insulin.

      The bill also requires insulin manufacturers to submit an annual report to the Commissioner of Banking and Insurance containing certain information concerning the manufacture, pricing, and sales of insulin products.

      This bill was pre-filed for introduction in the 2020-2021 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  provide that the purchase of insulin shall not be subject to any deductible and require health insurers to limit the copayment or coinsurance that may be required for an insulin prescription to $50 per 30 day supply of insulin;

      (2)  add findings and declarations concerning the rising cost of insulin prices;

      (3)  require insulin manufacturers to submit an annual report to the Commissioner of Banking and Insurance containing certain information concerning the manufacture, pricing, and sales of insulin products; and

      (4)  make certain technical changes.