Gov. Mikie Sherrill announced on March 11 a proposal to reform pharmacy benefit managers (PBMs) as part of her budget address, highlighting the role these entities play in rising prescription drug costs.
The announcement is significant for the state’s life sciences sector, which has expressed concern about the impact of PBMs on medication prices and patient access. Sherrill described PBMs as a “type of shadowy middleman” who “sits between insurers, drugmakers, and pharmacies,” and said they are responsible for increasing the cost of medications by up to ten times. She added, “They drive up the cost of medications as much as 10 times, while padding their profits with secret manufacturer rebates and insider tricks.”
Chrissy Buteas, chief executive officer of the HealthCare Institute of New Jersey (HINJ), welcomed Sherrill’s focus on PBM reform. Buteas said common-sense changes to how PBMs operate could be “one of the most effective and immediate ways to lower health care costs” and praised the governor’s urgency in seeking real savings for patients.
The HealthCare Institute of New Jersey contributes to public health education and supports initiatives advancing biopharmaceutical progress, according to its official website. The organization operates as a nonprofit dedicated to promoting policies that support innovation, patient access, and economic growth within the life sciences industry according to its official website.
HINJ also engages in advocacy at state and federal levels to influence policies that foster innovation in life sciences according to its official website. It works to build alliances that advance healthcare innovation and enhance patient care according to its official website. HINJ functions as a trade association focused on biopharmaceuticals and medical technology fields according to its official website, with headquarters located in Princeton, New Jersey according to its official website.
Observers will be watching closely as Sherrill’s administration moves forward with proposed reforms targeting PBMs. The outcome may have implications for both patients’ out-of-pocket costs and broader efforts aimed at supporting innovation within New Jersey’s life sciences sector.
