S T A T E O F N E W Y O R K
________________________________________________________________________
7909
I N S E N A T E
January 19, 2022
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the social services law and the public health law, in
relation to protecting access to pharmacy services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 4 of section 364-j of the social services law
is amended by adding two new paragraphs (w) and (x) to read as follows:
(W) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ADMINISTRA-
TIVE FEES PAID TO A MANAGED CARE PROVIDER OR A PHARMACY BENEFIT MANAGER
UNDER THE MEDICAL ASSISTANCE PROGRAM SHALL BE REDUCED FOR THE PURPOSE OF
INCREASING REIMBURSEMENT RATES TO RETAIL PHARMACIES UNDER THE MEDICAID
MANAGED CARE PROGRAM. BEGINNING ON AND AFTER JULY FIRST, TWO THOUSAND
TWENTY-TWO, ALL REIMBURSEMENT PAID BY MEDICAID MANAGED CARE PLANS TO
RETAIL PHARMACIES SHALL INCLUDE A PROFESSIONAL DISPENSING FEE AND THE
DRUG ACQUISITION COST FOR EACH OUTPATIENT DRUG DISPENSED AT NO LESS THAN
THE AMOUNT ESTABLISHED UNDER THE FEE-FOR-SERVICE PROGRAM, AS DEFINED IN
SECTION THREE HUNDRED SIXTY-SEVEN-A OF THIS TITLE, REGARDLESS OF WHETHER
SUCH REIMBURSEMENT IS PAID DIRECTLY BY THE MEDICAID MANAGED CARE PLAN OR
PASSED THROUGH A PHARMACY BENEFIT MANAGER OR OTHER ENTITY. THE
REIMBURSEMENT PROVIDED FOR UNDER THIS PARAGRAPH SHALL NOT APPLY TO ANY
EXISTING REIMBURSEMENT ARRANGEMENTS INVOLVING AN ELIGIBLE PROVIDER UNDER
SECTION 340B OF THE FEDERAL PUBLIC HEALTH SERVICES ACT OR A COMPREHEN-
SIVE HIV SPECIAL NEEDS PLAN UNDER SECTION FORTY-FOUR HUNDRED THREE-C OF
THE PUBLIC HEALTH LAW UNDER THE MEDICAL ASSISTANCE PROGRAM. NO MANAGED
CARE PROVIDER OR PHARMACY BENEFIT MANAGER SHALL REIMBURSE A PHARMACY
OWNED BY OR AFFILIATED WITH SUCH ENTITY AT A HIGHER RATE THAN THAT PAID
BY SUCH ENTITY TO A PHARMACY IT DOES NOT OWN OR IS NOT OTHERWISE AFFIL-
IATED WITH.
(X) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A MANAGED
CARE PROVIDER OR PHARMACY BENEFIT MANAGER ACTING ON ITS BEHALF, AS
DEFINED IN SECTION TWO HUNDRED EIGHTY-A OF THE PUBLIC HEALTH LAW, SHALL
NOT DENY ANY RETAIL PHARMACY THE OPPORTUNITY TO PARTICIPATE IN ANOTHER
PROVIDER'S PHARMACY NETWORK UNDER THE MEDICAL ASSISTANCE PROGRAM AT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11345-02-2
S. 7909 2
PREFERRED PARTICIPATION STATUS, PROVIDED THAT SUCH RETAIL PHARMACY
AGREES TO THE SAME REIMBURSEMENT AMOUNT, AS DEFINED IN PARAGRAPH (W) OF
THIS SUBDIVISION, AND IS ABLE TO FILL AND DISPENSE PRESCRIPTION AND
OVER-THE-COUNTER MEDICATIONS FOR THOSE ENROLLED IN THE MEDICAL ASSIST-
ANCE PROGRAM.
§ 2. Section 280-a of the public health law is amended by adding a new
subdivision 6 to read as follows:
6. DELIVERY OPTION. NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, NO PHARMACY BENEFIT MANAGER SHALL LIMIT THE OPTION FOR AN
INDIVIDUAL RECEIVING PRESCRIPTION OR OVER-THE-COUNTER MEDICATIONS TO
RECEIVE SUCH MEDICATIONS FROM THEIR LOCAL, NON-MAIL ORDER PHARMACY OF
CHOICE VIA DELIVERY INCLUDING IN-PERSON DELIVERY, UNITED STATES POSTAL
SERVICE OR OTHER MAIL OR COURIER SERVICE. NO RESTRICTIONS, PROHIBITIONS
OR PRIOR AUTHORIZATION REQUIREMENTS SHALL BE BASED ON THE INDIVIDUAL'S
CHOICE IN DELIVERY TYPE OR DISTANCE FROM A PHARMACY.
§ 3. This act shall take effect on the thirtieth day after it shall
have become a law; provided, however, that:
(a) the amendments to subdivision 4 of section 364-j of the social
services law made by section one of this act shall take effect July 1,
2022;
(b) if this act shall have become a law after such effective date it
shall take effect immediately and shall be deemed to have been in full
force and effect on and after July 1, 2022;
(c) the amendments to subdivision 4 of section 364-j of the social
services law made by section one of this act shall not affect the repeal
of such section and shall be deemed repealed therewith; and
(d) if chapter 828 of the laws of 2021 shall not have taken effect on
or before such effective date then section two of this act shall take
effect on the same date and in the same manner as such chapter of the
laws of 2021 takes effect.