Pharmacy organizations are responding to New York Governor Andrew Cuomo's veto of bill S.6531. Had it been signed, the bill would have given the state's superintendent of insurance licensing and regulatory authority over pharmacy benefit managers (PBMs).1
The bill, which passed the senate and the assembly in June 2019, was sponsored by Democrat Neil D. Breslin.1 The purpose of the bill, according to the NY senate website, was to require licensure for PBMs, and specify their duties and obligations as service providers. In addition, it would have provided for the procurement of prescription drugs at a negotiated rate; provided for funds received by a pharmacy in trust for the health plan or provider; and improved the appeals process to investigate and resolve multisource generic drug pricing disputes.1
If signed, the bill would have also required all PBMs doing business in New York State to register with the superintendent of insurance for the 2020 calendar year, and to be licensed after 2021, renewable every 3 years.1 Licenses could have been revoked for a range of reasons, including fraudulent applications or practices, incompetence, financial irresponsibility, intentional misrepresentation, unfair trade practice and fraud, violation of the superintendent-defined standards, and disciplinary actions in other states.
Reactions to the veto have been mixed. Click here to read the full story.