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Senate Commerce Committee Statement to Senate, No. 334 (February 10, 2022)

Summary

Senate Commerce Committee Statement to Senate, No. 334, with committee amendments, State of New Jersey, dated February 10, 2022, reporting Senate Bill No. 334 favorably and with committee amendments. The statement says the bill requires carriers to pass prescription drug savings on to consumers: compensation paid by a pharmaceutical manufacturer to a pharmacy benefits manager would be remitted to and retained by the carrier, which would use the amounts to lower premiums or reduce out of pocket costs at the point of sale. Each carrier would file an annual report with the commissioner. The committee amended the bill to clarify the definition of "compensation" and to apply it to plans issued or renewed on or after January 1 of the calendar year after enactment.

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Cite this document

“Senate Commerce Committee Statement to Senate, No. 334 (February 10, 2022).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-02-10-scm-s334-s1-f59419cd17/, SHA-256 d6780010a127146ee8c650a5d257ee25f1d668ef08164212cee0f31a26125105.

Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                   SENATE, No. 334
                   with committee amendments



 STATE OF NEW JERSEY
                   DATED: FEBRUARY 10, 2022

   The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 334.
   This bill requires carriers to pass prescription drug savings on to
consumers. The bill provides that all compensation paid by a
pharmaceutical manufacturer to a pharmaceutical benefits manager
as a result of negotiations of a reduced price for a pharmaceutical
between a pharmacy benefits manager and a manufacturer, in
relation to a contract between a pharmacy benefits manager and a
carrier related to its insured prescription drug benefits, would be
remitted to and retained by the carrier. Thereafter, the carrier
would be required to use these amounts to lower the premium for
covered persons under the carrier’s health benefits plan or to allow
for remittance directly to the covered person’s at the point of sale to
reduce the insured’s out of pocket costs.
   In addition, the bill requires each carrier to annually file a report,
with the commissioner, demonstrating how the carrier has complied
with the provisions of the bill.
   Under the bill, “compensation” is defined as any direct or
indirect financial benefit, but excludes any performance
compensation agreement paid by a manufacturer, developer, or
labeler.
   This bill was pre-filed for introduction in the 2022-2023 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.


COMMITTEE AMENDMENTS:
    The committee amended the bill to:
    (1) clarify the definition of “compensation” pursuant to the bill;
and
    (2) stipulate that the provisions of the bill are to apply to plans
issued or renewed on or after January 1 of the calendar year after the
date of enactment.

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