New York proposes pharmacy fee bill that could raise drug costs
A New York bill would force pharmacy benefit managers to pay pharmacies a minimum rate plus a $10.18 dispensing fee, a move critics say may increase prices and push pharmacies out of the state.
New York’s legislature has sent a bill to Governor Kathy Hochul that would require pharmacy benefit managers to reimburse pharmacies at a minimum rate tied to a federal benchmark and to add a $10.18 dispensing fee for each prescription, an initiative projected to cost about $576 million. Lawmakers claim insurers and PBMs will absorb the cost without passing it to consumers, but analysts argue the policy could push drug prices higher and force integrated pharmacy chains to exit the market.
The proposal mirrors similar statutes in sixteen other states, some of which have been contested in court and have prompted companies like CVS to warn of store closures and hundreds of job losses, as seen in Arkansas. Critics, including Arkansas Governor Sarah Huckabee Sanders and Michigan Senate candidate Abdul el Sayed, argue that targeting PBMs does not address the root causes of high drug prices. They recommend focusing on expanding domestic manufacturing, easing transportation regulations, and encouraging market competition to achieve affordable medicines for New Yorkers.
Why it matters
The bill could affect drug prices and pharmacy availability for millions of New Yorkers.
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