Bill > A02126

This bill establishes a pilot program aimed at reducing prescription drug costs by creating a "referenced rate" for the five most expensive prescription drugs purchased by state entities or health plans. The program requires the superintendent of insurance to determine maximum drug prices by comparing wholesale acquisition costs to prices in Canadian provinces (Ontario, Quebec, British Columbia, and Alberta), selecting the lowest price as the referenced rate. State entities and health plans would be prohibited from purchasing referenced drugs above this rate, and pharmacies would be barred from selling these drugs to state-covered patients at prices exceeding the referenced rate. The bill includes penalties for drug manufacturers or distributors who attempt to withdraw drugs from the state market to avoid the program or who refuse to negotiate prices in good faith. Any savings generated by the program must be used to reduce consumer costs, and participants must submit reports detailing these savings. The superintendent is also required to submit a comprehensive report to state leaders evaluating the pilot program's effectiveness and potential expansion. The program is designed to create transparency in drug pricing and provide a mechanism for controlling what the bill describes as "excessive and unconscionable" prescription drug prices.

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https://www.nysenate.gov/legislation/bills/2025/A2126