Advancing efforts to manage the high cost of prescription drugs in New Jersey, Attorney General Matthew J. Platkin and the Division of Consumer Affairs have announced new rules aimed at increasing transparency in drug pricing. These rules, effective upon filing by the Office of Administrative Law, implement a law signed by Governor Murphy in July 2023.
Attorney General Matthew J. Platkin stated, "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 rules will provide greater insight into drug pricing and help advance affordability and accessibility.
The regulations require registration, reporting, and compliance from five entities within the drug supply chain: manufacturers, insurance carriers, pharmacy benefits managers, wholesalers, and pharmacy services administrative organizations. These entities must provide data on drugs with significant price increases or high launch prices. The Division will use this information to produce an annual report on drug price trends to aid in formulating policy recommendations for affordability.
Cari Fais, Acting Director of the Division of Consumer Affairs, said that collecting and analyzing drug pricing information is crucial for ensuring market fairness and transparency. "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 the benefit of New Jersey consumers," she added.
Under these rules:
- Manufacturers must notify about price increases or new drugs meeting certain thresholds.
- Carriers must report spending on top prescription drugs.
- Pharmacy Services Administrative Organizations must disclose negotiated reimbursement rates.
- Wholesalers and Pharmacy Benefits Managers are required to provide pricing details based on manufacturer data.
These regulations are effective for up to 545 days from filing. They will be proposed for readoption according to standard rulemaking procedures on November 18, 2024.
