Senate Commerce Committee Statement to Senate, No. 1615 — State of New Jersey (March 14, 2022)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1615, State of New Jersey, dated March 14, 2022, reporting the bill favorably. The bill sets data reporting requirements for pharmacy benefits managers (PBMs), wholesale drug distributors, insurance issuers and manufacturers so the Division of Consumer Affairs can issue an annual report on prescription drug pricing trends and hold a public hearing on it. Manufacturers must give notice of price increases of more than 10 percent per unit and of new drugs with a wholesale acquisition cost of $670 per unit or more. The bill appropriates $900,000 from the General Fund to the Division of Consumer Affairs, and the statement says it is identical to Assembly Bill No. 2840.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
1615

STATE
OF NEW JERSEY

DATED: MARCH
14, 2022

The
Senate Commerce Committee reports favorably Senate Bill No. 1615.

This
bill establishes data reporting requirements for pharmacy benefits managers
(PBMs), wholesale drug distributors, insurance issuers, and manufacturers so
that the Division of Consumer Affairs can issue an annual report on emerging
trends in prescription drug pricing at each stage of the supply chain. Every
year, each of these reporting entities must register with the department and
report on measures such as the volume, sales, revenue and year-over-year change
in prescription drug transactions. Once the department compiles this
information and publishes its annual report on prescription drug pricing
trends, it must hold a public hearing on the findings.

The
bill also mandates that a manufacturer notify the department if it is
increasing the price of a prescription drug or if it is introducing: a new drug
with a wholesale acquisition cost of $670 per unit or more or a biosimilar drug
that has a wholesale acquisition cost that is not at least 15 percent less than
the wholesale acquisition cost of the referenced brand biologic at the time the
biosimilar is launched. The price increase reporting requirement applies in
any case where a manufacturer increases the wholesale acquisition cost by more
than 10 percent per unit for any brand-name drug or any generic drug priced at
more than $10 per unit.

The
bill appropriates from the General Fund to the Division of Consumer Affairs in
the Department of Law and Public Safety $900,000 to implement the provisions of
the bill.

As reported
by the committee, this bill is identical to Assembly Bill No. 2840.

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