Mercer Times

Advancing efforts to address the high cost of prescription drugs in New Jersey, Attorney General Matthew J. Platkin and the Division of Consumer Affairs have announced new rules to enhance transparency in drug pricing. These rules became effective following acceptance by the Office of Administrative Law and are part of a legislative initiative signed by Governor Phil Murphy in July 2023.

Attorney General Platkin highlighted the financial burden of high prescription drug costs on vulnerable populations, stating, "The high cost of prescription drugs is a financial burden that disproportionately impacts the health and well-being of the most vulnerable among us: low-income families, the elderly, the uninsured, and people with disabilities." He emphasized that these new regulations aim to provide greater insight into drug pricing and promote affordability.

The rules set forth registration, reporting, and compliance requirements for entities within the prescription drug supply chain, including manufacturers, insurance carriers, pharmacy benefits managers, wholesalers, and pharmacy services administrative organizations. These entities must report data on drugs with significant price hikes or high launch prices. This information will contribute to an annual report on emerging trends in drug prices.

Cari Fais, Acting Director of the Division of Consumer Affairs, stated that establishing rules for data collection and analysis is essential for ensuring market fairness. "The information we collect will help us identify factors that contribute to the high cost of prescription drugs and improve oversight of the drug industry to benefit New Jersey consumers," said Fais.

Under these new regulations:

- Manufacturers must notify about price increases or new drugs meeting certain price thresholds.

- Carriers need to report spending on top prescription drugs.

- Pharmacy Services Administrative Organizations (PSAOs) must disclose negotiated reimbursement rates.

- Wholesalers and Pharmacy Benefits Managers are required to provide pricing details based on gathered data.

These specially adopted rules will be effective for up to 545 days from filing. They are also proposed for readoption under normal rulemaking procedures as per state law.