Bill > S00438

This bill, known as the "Prescription Drug Supply Chain Transparency Act," aims to increase transparency within the prescription drug supply chain by requiring certain entities to register with and provide disclosures to the insurance department. Specifically, Pharmacy Services Administrative Organizations (PSAO), which act on behalf of pharmacies in dealings with health plans and pharmacy benefit managers (PBMs), must register and disclose ownership and financial interests in entities that provide pharmacy services, prescription drugs, or medical devices. Pharmacy switch companies, acting as intermediaries for insurance claims data between pharmacies and PBMs or health plans, must also register and disclose information about their services, including details on electronic voucher programs and transaction volumes. Additionally, rebate aggregators, which negotiate rebates with drug manufacturers on behalf of PBMs, must register and disclose their fee structures, any financial arrangements with manufacturers, and payments received from patient assistance programs. All collected fees and penalties from these entities will be deposited into the Pharmacy Benefit Manager Regulatory Fund. The bill also grants the superintendent of insurance broad powers to investigate these entities, issue cease and desist orders, and levy penalties for non-compliance, with provisions for electronic filing and confidentiality of investigative materials.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S438