•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A07304 Summary:

BILL NOA07304A
 
SAME ASNo Same As
 
SPONSORMcDonald
 
COSPNSRWeprin, Cunningham
 
MLTSPNSR
 
Add Art 30 3001 - 3010, Ins L; amd 99-oo, St Fin L
 
Establishes the prescription drug supply chain transparency act of 2023; requires pharmacy services administrative organizations, pharmacy switch companies and rebate aggregators to register with the insurance department and to provide certain disclosures relating to the ownership and activities of such entities; relates to deposits into the pharmacy benefit manager regulatory fund.
Go to top

A07304 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7304A
 
SPONSOR: McDonald
  TITLE OF BILL: An act to amend the insurance law, in relation to prescription drug supply chain transparency; and to amend the state finance law, in relation to deposits into the pharmacy benefit manager regulatory fund   PURPOSE: This legislation requires registration by, and disclosures from, Pharma- cy Services Administrative Organizations, switch companies and rebate aggregators to the Department of Financial Services.   SUMMARY OF PROVISIONS: Section 1: Establishes that the act shall be known and may be cited as the "Prescription Drug Supply Chain Transparency Act of 2023". Section 2: Creates a new Article of the Insurance Law comprising sections 3001 through 3010 which provide as follows: *§ 3001 provides definitions applicable to the new Article 30 for "manufacturer," "pharmacy services administrative orgzation," "rebate aggregator," and "switch company". *§ 3002-requires filings and submissions from registered co anies to DFS;. to be in electronic format. *§ 3003 requires special reports from registered companies, empowers thekSuperintendent of the Department of Financial Services to investi- gate registered companies, and establishes a penalty for violations. *§ 3004 requires the registration of pharmacy services administrative organizations. *§ 3005 requires certain disclosures by pharmay-ices administrative organizations. *§ 3006 requires the registration of pharmacy switch companies. *§ 3007 requires certain disclosures by pharmacy switch companies. *§ 3008 requires the registration of rebate aggregators. *§ 3009 requires certain disclosures by rebate aggregators. *§ 3010 requires fees and penalties collected pursuant to Article 30 the Insurance Law to be deposited into the Pharmacy Benefit Manager Regula- tory Fund established pursuant to § 99-oo of the State Finance Law. Section 3: amends § 99-oo of the State Finance Law to provide that fees and penalties collected pursuant to Article 30 of the Insurance Law shall be deposited into the Pharmacy Benefit Manager Regulatory Fund. Section 4: Provides for an immediate effective date.   JUSTIFICATION: The state has a compelling interest in providing for transparency into the price of prescription drugs and the regulation of entities that play a role in the distribution of prescription drugs in this state. Ever rising prescription drug costs impact consumers in this state both at the pharmacy counter and in health plan premium costs. Prescription drug costs also have direct costs to the state fiscal plan, health insurance companies, pharmacy benefit managers, hospitals, employers and unions.   LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: None. Fees and penalties established by this act would be deposited into the Pharmacy Benefit Manager Regulatory Fund established under § 99-oo of the State Finance Law, which would pay the costs of operationalizing the law.   EFFECTIVE DATE: This act shall take effect immediately.
Go to top

A07304 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7304--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 17, 2023
                                       ___________
 
        Introduced by M. of A. McDONALD, WEPRIN -- read once and referred to the
          Committee  on  Insurance  -- reported and referred to the Committee on
          Codes -- committee discharged,  bill  amended,  ordered  reprinted  as
          amended and recommitted to said committee
 
        AN  ACT  to  amend  the  insurance law, in relation to prescription drug
          supply chain transparency; and to amend  the  state  finance  law,  in
          relation to deposits into the pharmacy benefit manager regulatory fund
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
     2  "prescription drug supply chain transparency act of 2023".
     3    §  2.  The insurance law is amended by adding a new article 30 to read
     4  as follows:
     5                                 ARTICLE 30
     6                 PRESCRIPTION DRUG SUPPLY CHAIN TRANSPARENCY
     7  Section 3001. Definitions.
     8          3002. Electronic filing requirement.
     9          3003. Special reports and other powers.
    10          3004. Registration of pharmacy services administrative organiza-
    11                  tions.
    12          3005. Required disclosures by pharmacy  services  administrative
    13                  organizations.
    14          3006. Registration of pharmacy switch companies.
    15          3007. Required disclosures by pharmacy switch companies.
    16          3008. Registration of rebate aggregators.
    17          3009. Required disclosures by rebate aggregators.
    18          3010. Deposit of penalties and fees.
    19    §  3001.  Definitions. (a) For the purposes of this article, the defi-
    20  nitions contained in section two hundred eighty-a of the  public  health
    21  law shall apply to this article as if specifically set forth herein.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11150-02-3

        A. 7304--A                          2
 
     1    (b)  For  the purposes of this article, the following words or phrases
     2  shall  have  the  following  meanings,  unless  the  context   otherwise
     3  requires:
     4    (1)  "Manufacturer"  means  an  entity  engaged  in the manufacture of
     5  prescription drugs sold in this state.
     6    (2) "Pharmacy services administrative organization" or "PSAO" means an
     7  entity that is operating in this state and that contracts with a pharma-
     8  cy for the purpose of conducting business on the pharmacy's behalf  with
     9  health plans or pharmacy benefit managers.
    10    (3) "Rebate aggregator" means an entity that provides formulary rebate
    11  administrative services for pharmacy benefit managers or otherwise nego-
    12  tiates  rebates  with manufacturers on behalf of pharmacy benefit manag-
    13  ers.
    14    (4) "Switch company" means an entity  that  acts  as  an  intermediary
    15  between a pharmacy and a pharmacy benefit manager or health plan for the
    16  purpose of routing insurance claims data to or from a pharmacy.
    17    §  3002. Electronic filing requirement. Notwithstanding any law to the
    18  contrary, any filing or submission required under this article shall  be
    19  made  electronically  unless  the entity required to make such filing or
    20  submission demonstrates undue hardship, impracticability or  good  cause
    21  as required by section three hundred sixteen of this chapter.
    22    §  3003.  Special reports and other powers. (a) The superintendent may
    23  address to any entity required to register or report  information  under
    24  this  article,  or  its  officers,  or any agent or employee thereof any
    25  written inquiry in relation to matters  connected  to  the  requirements
    26  outlined in this article.  Every individual or entity so addressed shall
    27  reply in writing to such inquiry promptly and truthfully, and such reply
    28  shall be, if required by the superintendent, subscribed by such individ-
    29  ual,  or  by such officer or officers of the entity, or by such agent or
    30  employee of the  entity  as  the  superintendent  shall  designate,  and
    31  affirmed by them as true under the penalties of perjury.
    32    (b) In the event any individual or entity does not submit a good faith
    33  response  to  an  inquiry from the superintendent pursuant to subsection
    34  (a) of this section within a time period specified by the superintendent
    35  of not less than fifteen business days, the superintendent is authorized
    36  to levy a civil penalty, after notice and hearing, against  such  person
    37  not  to exceed one thousand dollars per day for each day beyond the date
    38  specified by the superintendent for response to the inquiry.
    39    (c) In addition to all other powers granted by law, the superintendent
    40  is hereby empowered to order any person or entity required  to  register
    41  or  report  information  under  this  article  to  cease and desist from
    42  violations of this article and, following issuance of such an order, may
    43  bring and maintain an action in any court of competent jurisdiction  for
    44  an injunction or other appropriate relief to enjoin threatened or exist-
    45  ing  violations  of  this  article, or of the superintendent's orders or
    46  regulations. Such action may specifically seek restitution on behalf  of
    47  persons  aggrieved  by  a  violation  of this article or orders or regu-
    48  lations of the superintendent.
    49    (d) In addition to all other powers granted by law, whenever it  shall
    50  appear  to  the superintendent, either upon complaint or otherwise, that
    51  in the course of its business within or from this state that any  entity
    52  shall  have  employed,  or  employs,  or is about to employ any business
    53  practice or shall have performed, or  is  performing,  or  is  about  to
    54  perform any act in violation of this article or orders or regulations of
    55  the  superintendent,  or  the  superintendent  believes  it to be in the
    56  public interest that an investigation be made, the  superintendent  may,

        A. 7304--A                          3
 
     1  in the superintendent's discretion, either require or permit such entity
     2  or  any  agent or employee thereof, to file with the department a state-
     3  ment in writing under oath or otherwise as to all the facts and  circum-
     4  stances  concerning  the subject matter that the superintendent believes
     5  is in the public interest  to  investigate  and  for  such  purpose  may
     6  prescribe  forms  upon  which  such statements shall be made. The super-
     7  intendent may also require such other data and information as the super-
     8  intendent may deem relevant and may make such  special  and  independent
     9  investigations  as  the  superintendent may deem necessary in connection
    10  with the matter. It shall be the duty  of  all  public  officers,  their
    11  deputies,  assistants,  subordinates,  clerks or employees and all other
    12  persons to render and furnish to the superintendent, when  requested  in
    13  connection  with an investigation under this subsection, all information
    14  and assistance in their possession or within their power.
    15    (e) Any entity who violates an order under subsection (c)  or  (d)  of
    16  this  section  shall  be  subject to a civil penalty, after notice and a
    17  hearing, of not more than ten thousand dollars per act in violation,  in
    18  addition to any other penalty provided by law.
    19    (f)  Any  communications  or  documents sent or received in connection
    20  with an investigation under this article and any materials referring  to
    21  such information in the possession of the superintendent shall be confi-
    22  dential  and  not subject to disclosure.  Notwithstanding the foregoing,
    23  the superintendent may release such confidential communications or docu-
    24  ments to the extent necessary to  address  criminal  or  other  unlawful
    25  behavior.  This subsection shall not apply to information, documents and
    26  materials in the possession and under the control  of  an  entity  other
    27  than the superintendent.
    28    §  3004.  Registration  of  pharmacy services administrative organiza-
    29  tions. (a) No PSAO shall operate in this state after March thirty-first,
    30  two thousand twenty-four without first registering with the department.
    31    (b) A PSAO seeking registration shall  file,  in  a  form  and  manner
    32  determined  by  the superintendent, information that includes at a mini-
    33  mum:
    34    (1) the legal name of the entity;
    35    (2) any trade or other names used by the entity;
    36    (3) the organizational structure of the entity;
    37    (4) the pharmacies located within  this  state  to  which  the  entity
    38  provides services;
    39    (5) the persons who exercise control of the entity;
    40    (6) a primary point of contact for the entity;
    41    (7) an agent for service of process; and
    42    (8) the most recent set of audited financials for the PSAO.
    43    (c)  The superintendent shall accept a registration only if the super-
    44  intendent determines that all the required information has been provided
    45  in a satisfactory form and  has  received  payment  of  a  nonrefundable
    46  registration fee of five hundred dollars.
    47    (d)  If  any  of the information contained in the registration, except
    48  for the information contained in paragraph four  of  subsection  (b)  of
    49  this section, shall change, the PSAO shall notify the department of such
    50  change  in  a  form and manner prescribed by the superintendent for such
    51  purpose within thirty days of the change.   The  requirement  to  update
    52  shall  include  the  filing  of  a  new  set  of audited financials upon
    53  adoption. For any change other than new audited financials,  the  filing
    54  shall not be deemed complete unless accompanied by a payment of a fee of
    55  fifty dollars.

        A. 7304--A                          4
 
     1    (e)  Every  PSAO  registration  issued  pursuant to this section shall
     2  expire twelve months after the date of  issue.  A  PSAO  may  renew  its
     3  registration for another twelve months upon the filing of an application
     4  in conformity with this section.
     5    (f)  Before  a PSAO registration shall be renewed, the PSAO shall file
     6  an application for renewal in such form as the superintendent prescribes
     7  and pay a fee of five hundred dollars.
     8    (g) If a PSAO files a renewal application with the  superintendent  at
     9  least  one  month before its expiration, then the registration sought to
    10  be renewed shall continue in full force  and  effect  either  until  the
    11  issuance  by  the superintendent of the renewal registration applied for
    12  or until five days after the superintendent shall have refused to  issue
    13  such renewal registration and given notice of such refusal to the appli-
    14  cant,  otherwise  the  PSAO registration shall expire and the registrant
    15  shall have no expectation of renewal.
    16    § 3005.  Required  disclosures  by  pharmacy  services  administrative
    17  organizations.  (a)  (1)  Each  PSAO  shall  at the time of registration
    18  pursuant to section three thousand four of this article disclose to  the
    19  department  the extent of any ownership or control of the PSAO or by the
    20  PSAO of any parent company, subsidiary, or affiliate that:
    21    (A) provides pharmacy services;
    22    (B) provides prescription drug or device services; or
    23    (C) manufactures, sells, or distributes  prescription  drugs,  biolog-
    24  icals, or medical devices.
    25    (2)  A PSAO shall furnish a copy of the disclosure made at the time of
    26  registration to all pharmacies located in this state with which it has a
    27  contract in place at the time of the  registration.  A  PSAO  shall  not
    28  collect  any  fee for any services provided to a pharmacy for any period
    29  beginning five days after the filing of a registration with the  depart-
    30  ment until such disclosure is sent to the pharmacy.
    31    (3)  Not later than April first, two thousand twenty-five, the depart-
    32  ment shall publish all disclosures received  under  this  section  on  a
    33  publicly  accessible online database, which shall be searchable at least
    34  by PSAO name. All disclosures shall be posted not later than  ten  busi-
    35  ness days after a registration is accepted and shall remain on the data-
    36  base for the duration of the registration of the PSAO.
    37    (b)  (1) Prior to entering into any contract with any pharmacy located
    38  in this state, including a contract with a group of pharmacies at  least
    39  one  of  which  is in this state, a PSAO shall furnish to the pharmacy a
    40  written disclosure of  the  information  required  to  be  disclosed  in
    41  subsection  (a)  of  this  section. No contract with a pharmacy shall be
    42  enforceable against the pharmacy by a PSAO unless such PSAO  makes  such
    43  disclosure  prior  to  the  agreement.  In  addition  to any other power
    44  conferred by law, the superintendent may prescribe the form  and  manner
    45  of such disclosures.
    46    (2)  A  PSAO  that owns, is owned by, in whole or in part, or controls
    47  any entity that manufactures, sells, or distributes prescription  drugs,
    48  biologicals,  or  medical  devices shall not, as a condition of entering
    49  into a contract with a pharmacy, require that the pharmacy purchase  any
    50  drugs or medical devices from an entity with which the PSAO has a finan-
    51  cial interest, or an entity with an ownership interest in the PSAO.
    52    (3)  No PSAO shall enter into a contract with a pharmacy in this state
    53  unless such contract shall  provide  that  all  remittances  for  claims
    54  submitted  by  a pharmacy benefit manager or third-party payer on behalf
    55  of a pharmacy to the PSAO shall be passed through by  the  PSAO  to  the
    56  pharmacy  within  a  reasonable  amount  of  time,  established  in  the

        A. 7304--A                          5
 
     1  contract, after receipt of the remittance by the PSAO from the  pharmacy
     2  benefit manager or third-party payer.
     3    (c)  (1) If a PSAO provides, accepts, or processes a discount, conces-
     4  sion, or product voucher, to reduce, directly or indirectly,  a  covered
     5  individual's  out-of-pocket  expense  for the order, dispensing, substi-
     6  tution, sale, or purchase of a prescription drug shall make available to
     7  each pharmacy  in  this  state  that  it  contracts  with  or  which  it
     8  contracted  with  in  the  prior  calendar  year,  an annual report that
     9  includes:
    10    (A) an aggregated total of all such transactions, by the pharmacy; and
    11    (B) an aggregated total of any payments received by  the  PSAO  itself
    12  for  providing,  processing,  or  accepting any discount, concession, or
    13  product voucher on behalf of a pharmacy.
    14    (2) A PSAO that does not  provide,  accept,  or  process  a  discount,
    15  concession,  or  product  voucher  to  reduce, directly or indirectly, a
    16  covered individual's out-of-pocket expense for  the  order,  dispensing,
    17  substitution, sale, or purchase of a prescription drug may indicate "not
    18  applicable" when filing for registration and will subsequently be exempt
    19  from providing such reports.
    20    (3) A pharmacy in this state that is a party to a contract with a PSAO
    21  shall  have  a  right to an accounting of the funds received by the PSAO
    22  for goods or services provided by the pharmacy to patients  and  custom-
    23  ers.
    24    §  3006.  Registration  of  pharmacy  switch  companies. (a) No switch
    25  company may do business in this state after June thirtieth, two thousand
    26  twenty-four without first registering with the department.
    27    (b) A switch company seeking registration shall file with the  depart-
    28  ment, in a form and manner determined by the superintendent, information
    29  including but not limited to:
    30    (1) the legal name of the entity;
    31    (2) any trade or other names used by the entity;
    32    (3) the organizational structure of the entity;
    33    (4)  the pharmacies located within this state and the pharmacy benefit
    34  managers licensed in this state to which the entity provides services;
    35    (5) the persons who exercise control of the entity;
    36    (6) a primary point of contact for the entity;
    37    (7) an agent for service of process; and
    38    (8) the most recent set of audited financials for the pharmacy  switch
    39  company.
    40    (c)  The  superintendent shall accept a registration only if he or she
    41  deems that all the required information has been provided in a satisfac-
    42  tory form and manner and has received payment of a nonrefundable  regis-
    43  tration fee of five hundred dollars.
    44    (d)  If  any  of  the  information contained in the registration shall
    45  change, the switch company shall notify the department of the change  in
    46  a  form  and  manner  prescribed  by the superintendent for such purpose
    47  within thirty days of the change.   Such  requirement  to  update  shall
    48  include the filing of a new set of audited financials upon adoption. For
    49  any  change  other  than new audited financials, the filing shall not be
    50  deemed complete unless accompanied by  a  payment  of  a  fee  of  fifty
    51  dollars.
    52    (e)  Every  pharmacy switch company's registration shall expire twelve
    53  months after the date of issue. Every registration  issued  pursuant  to
    54  this section may be renewed for the ensuing period of twelve months upon
    55  the filing of an application in conformity with this section.

        A. 7304--A                          6
 
     1    (f)  Before a pharmacy switch company's registration shall be renewed,
     2  the pharmacy switch company shall properly file in  the  office  of  the
     3  superintendent  an  application  for  renewal in such form as the super-
     4  intendent prescribes and pay a fee of five hundred dollars.
     5    (g) If an application for a renewal registration shall have been filed
     6  with  the  superintendent at least one month before its expiration, then
     7  the registration sought to be renewed shall continue in full  force  and
     8  effect  either  until  the issuance by the superintendent of the renewal
     9  registration applied for or until five  days  after  the  superintendent
    10  shall  have  refused to issue such renewal registration and given notice
    11  of such refusal to  the  applicant,  otherwise  the  registration  shall
    12  expire and the registrant shall have no expectation of renewal.
    13    § 3007. Required disclosures by pharmacy switch companies. Each switch
    14  company  shall annually disclose to the department, in a form and manner
    15  prescribed by the superintendent, such information as the superintendent
    16  deems necessary for the proper supervision of the industry. Such  infor-
    17  mation shall include:
    18    (a)  a list of services the switch company provides and the industries
    19  to which they are provided;
    20    (b) information on electronic voucher services provided by the  switch
    21  company, including:
    22    (1) a list of manufacturers that the switch company has contracts with
    23  or for which it transmits electronic vouchers;
    24    (2) a list of medications and the National Drug Codes (NDCs) for which
    25  the switch company may apply electronic vouchers; and
    26    (3)  the total amount of money collected from manufacturers related to
    27  transmission of electronic vouchers; and
    28    (c) the number of transactions processed in this state and  the  total
    29  amount of revenue attributable to those transactions.
    30    §  3008.  Registration of rebate aggregators. (a) No rebate aggregator
    31  may do business in this state after September  thirtieth,  two  thousand
    32  twenty-four without first registering with the department.
    33    (b) A rebate aggregator seeking registration shall file, in a form and
    34  manner  determined  by the superintendent, information including but not
    35  limited to:
    36    (1) the legal name of the entity;
    37    (2) any trade or other names used by the entity;
    38    (3) the organizational structure of the entity;
    39    (4) the health plans and the pharmacy  benefit  managers  licensed  in
    40  this state to which the entity provides services;
    41    (5) the persons who exercise control of the entity;
    42    (6) a primary point of contact for the entity;
    43    (7) an agent for service of process; and
    44    (8)  the most recent set of audited financials for the rebate aggrega-
    45  tor.
    46    (c) The superintendent shall accept a registration only if he  or  she
    47  deems that all the required information has been provided in a satisfac-
    48  tory  form and manner and has received payment of a nonrefundable regis-
    49  tration fee of five hundred dollars.
    50    (d) If any of the information  contained  in  the  registration  shall
    51  change, the rebate aggregator shall notify the department of such change
    52  in  a  form and manner prescribed by the superintendent for such purpose
    53  within thirty days of the  change.  Such  requirement  to  update  shall
    54  include the filing of a new set of audited financials upon adoption. For
    55  any  change  other  than new audited financials, the filing shall not be

        A. 7304--A                          7
 
     1  deemed complete unless accompanied by  a  payment  of  a  fee  of  fifty
     2  dollars.
     3    (e)  Every rebate aggregator's registration shall expire twelve months
     4  after the date of issue. Every  registration  issued  pursuant  to  this
     5  section  may be renewed for the ensuing period of twelve months upon the
     6  filing of an application in conformity with this section.
     7    (f) Before a rebate aggregator's registration shall  be  renewed,  the
     8  rebate  aggregator  shall properly file in the office of the superinten-
     9  dent an application for renewal  in  such  form  as  the  superintendent
    10  prescribes and pay a fee of five hundred dollars.
    11    (g) If an application for a renewal registration shall have been filed
    12  with  the  superintendent at least one month before its expiration, then
    13  the registration sought to be renewed shall continue in full  force  and
    14  effect  either  until  the issuance by the superintendent of the renewal
    15  registration applied for or until five  days  after  the  superintendent
    16  shall  have  refused to issue such renewal registration and given notice
    17  of such refusal to  the  applicant,  otherwise  the  registration  shall
    18  expire and the registrant shall have no expectation of renewal.
    19    §  3009.  Required  disclosures by rebate aggregators. (a) Each rebate
    20  aggregator that has a contract or arrangement with  a  pharmacy  benefit
    21  manager  serving  a  health  plan shall, on an annual basis, disclose in
    22  writing to the health plan the following:
    23    (1) fee structure provisions of any contract  or  arrangement  between
    24  the rebate aggregator and pharmacy benefit manager or drug manufacturer,
    25  including:
    26    (A) fees collected for aggregating rebates due to the health plan; and
    27    (B)  such other information as the superintendent may require by regu-
    28  lation; and
    29    (2)  quantification  of  inflationary   payments,   credits,   grants,
    30  reimbursements,  other  financial  or  other reimbursements, incentives,
    31  inducements, refunds or other benefits received by the rebate aggregator
    32  from the drug manufacturer and retained by the rebate aggregator, wheth-
    33  er referred to as a rebate, a discount, or otherwise.
    34    (b) (1) Each rebate aggregator shall, at  the  time  of  registration,
    35  disclose to the department the extent of any ownership or control of the
    36  rebate  aggregator  or  by  the rebate aggregator of any parent company,
    37  subsidiary, or other  affiliated  organization  that  provides  pharmacy
    38  benefit management services.
    39    (2)  Each  rebate  aggregator shall on an annual basis disclose to the
    40  department the information requested by the superintendent, including:
    41    (A) any payments made to a rebate aggregator by  a  drug  manufacturer
    42  relating to a drug's utilization, including inflationary payments, cred-
    43  its,  grants,  reimbursements,  other financial or other reimbursements,
    44  incentives, inducements, refunds  or  other  benefits  received  by  the
    45  rebate  aggregator,  whether  referred  to  as  a rebate, a discount, or
    46  otherwise;
    47    (B) any payments made, including those described in  subparagraph  (A)
    48  of this paragraph and subsequently retained by a rebate aggregator;
    49    (C)  any fees charged by the rebate aggregator to the pharmacy benefit
    50  manager or drug manufacturer relating to a drug's utilization;
    51    (D) any payments made to a rebate aggregator from a  program  adminis-
    52  tered  by a drug manufacturer for the purpose of assisting patients with
    53  the cost of prescription drugs, including copayment assistance programs,
    54  discount cards, and coupons; and

        A. 7304--A                          8
 
     1    (E) the terms and conditions of any contract  or  arrangement  between
     2  the rebate aggregator and a pharmacy benefit manager or drug manufactur-
     3  er.
     4    §  3010.  Deposit  of penalties and fees. Penalties and fees collected
     5  pursuant to this article shall be deposited into  the  pharmacy  benefit
     6  manager  regulatory  fund established pursuant to section ninety-nine-oo
     7  of the state finance law.
     8    § 3. Subdivision 3 of section 99-oo of the state finance law, as added
     9  by chapter 128 of the laws of 2022, is amended to read as follows:
    10    3. Such fund shall consist of money received  by  the  state  as  fees
    11  under  [article] articles twenty-nine and thirty of the insurance law or
    12  penalties ordered under [article] articles twenty-nine and thirty of the
    13  insurance law and all other monies  appropriated,  credited,  or  trans-
    14  ferred thereto from any other fund or source pursuant to law. All monies
    15  shall remain in such fund unless and until directed by statute or appro-
    16  priation.
    17    § 4. This act shall take effect immediately.
Go to top