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Assembly Bill A4717A

2017-2018 Legislative Session

Relates to civil penalties for violations concerning the pharmacy benefit manager contract appeals process

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Archive: Last Bill Status - In Senate Committee Health Committee

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Bill Amendments

2017-A4717 - Details

See Senate Version of this Bill:
S5623
Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Amd §280-a, Pub Health L

2017-A4717 - Summary

Establishes civil penalties for violations concerning the pharmacy benefit manager contract appeals process; five thousand dollars for each violation recoverable by the attorney generals office; relates to the process for appeals.

2017-A4717 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4717
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Health
 
 AN ACT to amend the public health law, in relation  to  civil  penalties
   for  violations  concerning  the  pharmacy  benefit  manager  contract
   appeals process
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 280-a of the public health law is amended by adding
 two new subdivisions 3 and 4 to read as follows:
   3.  ANY  PERSON WHO VIOLATES THE PROVISIONS OF SUBDIVISION TWO OF THIS
 SECTION SHALL BE SUBJECT TO A CIVIL PENALTY NOT  TO  EXCEED  TWENTY-FIVE
 THOUSAND DOLLARS FOR EACH VIOLATION.
   4.  THE  ATTORNEY  GENERAL  SHALL BRING AN ACTION TO RECOVER THE CIVIL
 PENALTIES PROVIDED BY SUBDIVISION THREE OF THIS  SECTION  AND  FOR  SUCH
 OTHER RELIEF AS MAY BE DEEMED NECESSARY.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07427-01-7

co-Sponsors

2017-A4717A (ACTIVE) - Details

See Senate Version of this Bill:
S5623
Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Amd §280-a, Pub Health L

2017-A4717A (ACTIVE) - Summary

Establishes civil penalties for violations concerning the pharmacy benefit manager contract appeals process; five thousand dollars for each violation recoverable by the attorney generals office; relates to the process for appeals.

2017-A4717A (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4717--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Health -- committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend the public health law, in relation to civil penalties
   for  violations  concerning  the  pharmacy  benefit  manager  contract
   appeals process; and in relation to the process for appeal
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 280-a of the public health law is amended by adding
 two new subdivisions 3 and 4 to read as follows:
   3. ANY PHARMACY BENEFIT MANAGER WHO VIOLATES THE PROVISIONS OF  SUBDI-
 VISION  TWO  OF  THIS SECTION SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO
 EXCEED FIVE THOUSAND DOLLARS FOR EACH VIOLATION.
   4. THE ATTORNEY GENERAL SHALL BRING AN ACTION  TO  RECOVER  THE  CIVIL
 PENALTIES  PROVIDED  BY  SUBDIVISION  THREE OF THIS SECTION AND FOR SUCH
 OTHER RELIEF AS MAY BE DEEMED NECESSARY.
   § 2. Paragraph (e) of subdivision 2 of section  280-a  of  the  public
 health  law,  as added by chapter 540 of the laws of 2015, is amended to
 read as follows:
   (e) if an appeal is denied, the pharmacy benefit manager shall identi-
 fy [the national drug code of  a  therapeutically  equivalent  drug,  as
 determined  by  the federal Food and Drug Administration, that is avail-
 able for purchase by pharmacies in this state  from  wholesalers  regis-
 tered  pursuant to subdivision four of section sixty-eight hundred eight
 of the education law at a price which is equal to or less than the maxi-
 mum allowable cost for that drug as determined by the  pharmacy  benefit
 manager]  IN  WRITING:  (I)  THE NATIONAL DRUG CODE OF A THERAPEUTICALLY
 EQUIVALENT DRUG AS DETERMINED BY THE FOOD AND DRUG  ADMINISTRATION  THAT
 IS  AVAILABLE  FOR  PURCHASE  BY RETAIL COMMUNITY PHARMACIES IN THE SAME
 PACKAGE SIZE, (II) THE NAME OF THE  WHOLESALER  REGISTERED  PURSUANT  TO
 SUBDIVISION  FOUR  OF SECTION SIXTY-EIGHT HUNDRED EIGHT OF THE EDUCATION
 LAW FROM WHICH THE PRICE WAS OBTAINED, AND (III) THE DATE ON  WHICH  THE
 PRICE WAS DETERMINED.
   § 3. This act shall take effect immediately.

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