Bill > S01351

This bill establishes a three-year pilot program to study and potentially control the cost of prescription drugs by setting a "referenced rate," which is a maximum price for certain drugs. The program is based on the finding that New Yorkers pay significantly more for prescription drugs than Canadians, leading to negative impacts on health, economic well-being, and overall healthcare costs. The "referenced rate" will be determined by comparing the "wholesale acquisition cost" (the price manufacturers sell drugs to wholesalers) with prices from Canadian provinces and, if necessary, the Canadian government's ceiling price for patented medicines. This program applies to "state entities" (government agencies purchasing drugs for state-funded individuals, excluding Medicaid) and "health plans" (insurance providers), and also allows "ERISA plans" (employer-sponsored retirement plans) to opt-in. It prohibits these entities and licensed pharmacies from purchasing or selling "referenced drugs" (the ten most costly prescription drugs identified by the state) above this referenced rate, and penalizes manufacturers or distributors who withdraw drugs from the state to avoid the program or fail to negotiate prices within the referenced rate. The bill also mandates that any savings achieved through this program must benefit purchasers and consumers of healthcare, and requires reporting on savings and recommendations for program expansion.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S1351