NY Legislature OKs Consumer Prescription-Drug Protections


The New York state Senate has given final legislative passage to a bill aimed at preventing consumers from overpaying for their medications.

The measure passed last week by the Republican-led chamber prohibits gag clauses and clawbacks, two practices called into question amid the rising prices of prescription drugs.

The Senate bill, sponsored by Sen. Kemp Hannon of Long Island, outlaws gag clauses that prohibit pharmacist benefit managers (PBMs) from telling consumers certain information, including that the drug may cost less if they pay out-of-pocket.

The measure also prohibits PBMs from contract clawbacks, a potential moneymaker for a PBM when a patient pays a pharmacy a copayment that is more than the actual cost of the drug.

The Democrat-controlled Assembly has passed the legislation, which now goes to Democratic Gov. Andrew Cuomo’s desk.