State Senator Christopher J. Ryan (SD-50) and the Senate Democratic Majority advanced legislation to lower prescription drug costs, expand health care access, and promote health equity. As Washington continues to cut funding for critical healthcare programs, the Senate Democratic Conference is standing up for New Yorkers and protecting patients’ access to the prescriptions, services, and care they need.

The bills in this package aim to put New York’s patients above profits. This package includes legislation that would ban anticompetitive pay-for-delay agreements, which compensate drug manufacturers at the expense of consumers; ensure rebates are distributed equitably and in a timely manner to patients; and mandate health insurance policies cover diabetes-related health screenings.

Also included in this package is “The New York State Affordable Drug Manufacturing Act.” If signed into law, New York would become the second state in the nation to pursue its own drug manufacturing to lower costs and protect against short supplies.

“Health care should never be a luxury reserved for those who can afford it. Right now, too many families in Central New York are forced to choose between filling a prescription and paying their bills. That’s unacceptable. This legislative package is about putting patients first by lowering prescription drug costs, increasing transparency, and expanding access to critical services. Whether it’s cracking down on price-gouging practices, ensuring rebates actually reach patients at the pharmacy counter, or creating new pathways to manufacture affordable medications here in New York, we are taking real steps to make health care more affordable and accessible. At a time when federal support is uncertain, we are standing up to protect New Yorkers and ensure that cost is never a barrier to the care they need.”

The legislation passed by the Senate Democratic Majority includes:

● The New York Affordable Drug Manufacturing Act: This bill, S.1618, sponsored by Senator Rivera, would authorize the NYS Department of Health and its commissioner to establish partnerships directly with drug manufacturers to help significantly lower the cost of drugs for consumers by helping secure more generic alternatives to prescription medications.

● Banning Pay-for-Delay Agreements: This bill, S.3203, sponsored by Senator Fernandez, would ban prescription drug manufacturers from entering into pay-for-delay agreements, which prolong the marketplace entry of generic alternatives to brand-name drugs and prevent competition.

● Expanding Fee Schedules to OASAS Treatment Centers: This bill, S.4950, sponsored by Senator Harckham, would require the Office of Addiction Services and Supports (OASAS) to establish fee schedules for services provided by OASAS treatment centers, and would prohibit persons from being denied treatment at such centers because of their inability to pay.

● Ensuring Patients Benefit from Prescription Drug Rebates: This bill, S.2128, sponsored by Senator Jackson, would ensure patients benefit from rebates within the prescription drug supply chain and require health insurance issuers to certify that a majority of those rebates (greater than 85%) are distributed to the patients at the point of sale.

● Requiring Insurance Coverage of Diabetes Related Screenings: This bill, S.634B, sponsored by Senator Liu, would require certain health insurance policies to provide coverage for diabetes and prediabetes screenings.

● Prescription Drug Supply Chain Transparency Act: This bill, S.438, sponsored by Senator Myrie, would require pharmacy services administrative organizations, switch companies, and rebate aggregators to register with the Department of Financial Services. These companies would have to provide certain disclosures like ownership, structure, and audited financials to the department. The department would then post the information to a searchable database on its website.

● Wholesale Prescription Drug Importation Program: This bill, S.371, sponsored by Senator Skoufis, would establish a wholesale prescription drug importation program in New York State, in accordance with federal law, from countries with consumer safety on par with the U.S. drug supply chain system and where significant consumer cost savings are possible.

● Streamlining Reimbursements to Pharmacies: This bill, S.5939B, sponsored by Senator Skoufis, would simplify and alter the methodology for pharmacy reimbursement for commercial health plans. It would require pharmacy benefit managers (PBMs) to reimburse participating pharmacies at the National Drug Acquisition Cost (NADAC) rate or at the pharmacy acquisition cost rate under certain circumstances. In addition, it would ensure PBMs pay a dispensing fee that is on par with the Medicaid professional dispensing fee.