NewsLocal News


Governor Hochul signs landmark legislation for pharmacy benefit managers

Regulates pharmacy benefit managers and gives consumer more transparency on prescription drug costs
Amazon opens an online pharmacy in attempt to shake up another major industry
Posted at 10:06 PM, Jan 02, 2022
and last updated 2022-01-02 22:06:25-05

BUFFALO, NY (WKBW) — Governor Kathy Hochul has signed landmark legislation that will bring transparency and regulations to pharmacy benefit managers, and hopefully save you some money.

Pharmacy benefit managers are companies that manage prescription drug benefits on behalf of health insurers and large employers.

They have faced growing scrutiny about their role in the rising cost of prescription drugs.

This new law will require PBM's to be licensed and registered, and will allow people to make more well-informed choices about their healthcare.

The State Department of Financial Services will enforce the law, and take complaints from consumers, pharmacies, and healthcare providers.

"In the midst of a global public health crisis, it's crucial that we take every opportunity to improve the health care system and reduce costs for New Yorkers," Governor Hochul said. "This landmark law creates the most comprehensive regulatory framework in the country for Pharmacy Benefit Managers, increasing transparency for consumers and shedding light on the cost of prescription drugs. Navigating costs associated with medications and insurance can be difficult, so I am proud to sign this legislation to make it that much easier."