A new bipartisan mandate in New York may increase prescription drug costs for millions of residents. State lawmakers voted to impose a minimum payment structure for pharmacies, which could lead to higher expenses for consumers.
● Legislative Action: The New York state legislature is pushing for a mandate requiring pharmacy benefit managers (PBMs) to pay pharmacies a minimum amount for drugs and a dispensing fee of $10.18 per prescription, significantly higher than the current average of about $2.
● Financial Impact: The Pharmaceutical Care Management Association estimates this mandate will cost $576 million overall, most likely impacting consumers directly.
● Support vs. Opposition: Proponents argue the measure will protect pharmacists, but critics assert that it merely shifts financial burdens, potentially leading to higher premiums for consumers who already face high healthcare costs.
● Historical Context: Similar pricing mandates exist in 16 other states, primarily led by Republican lawmakers, with varying minimum dispensing fees.
● Exemptions: The new bill exempts health plans collectively bargained by unions, leaving nonunionized workers and small business employees to bear the financial brunt.
● Governor's Role: Critics urge Governor Kathy Hochul to veto the bill to align with her stated commitment to affordability in healthcare, warning that otherwise, the policy may serve as a government-sanctioned protection racket for certain interest groups.
The proposed prescription drug mandate in New York has raised concerns about increasing costs for consumers, particularly those not covered by collective bargaining agreements. Observers are awaiting Governor Hochul's decision, which could significantly influence the affordability of prescription medications in the state.
https://www.city-journal.org/article/new-york-prescription-drug-prices-pharmacy-benefit-managers
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