While government agencies are often criticized for their actions, it is both refreshing and essential to commend the New York State Department of Financial Services (DFS) for its recent decision to reevaluate their proposed regulations on pharmacy benefit managers (PBMs) and the pharmacy benefits that employers and unions provide.
In 2021, the New York State Legislature passed legislation on prescription drug costs that granted DFS new authority to regulate PBMs, with a specific focus on enhancing transparency. However, the regulations as initially proposed went much farther than the original intent of the law — and had the potential to inadvertently escalate prescription drug costs for New York residents.
Thankfully, DFS listened to the patients, employers, and unions who spoke out against their proposed regulations, and we are encouraged by their shift in approach. The regulations, if implemented, could have resulted in increased costs for employers, unions, patients, including seniors on Medicare. We were especially concerned by a new $10.18 fee on prescriptions they would have imposed, adding to the financial burdens of many New Yorkers.
DFS also contemplated changes that could have affected access to home-delivery prescriptions, a critical service for many people, including seniors and rural communities. Another matter of concern was a potential ban on affordable pharmacy networks, which offer less-expensive prescriptions at select pharmacies. What’s more, DFS even considered lowering pharmacy quality and safety standards for dispensing specialty medications – those taken most commonly by patients with dangerous or chronic conditions, like MS or cancer.
We commend DFS for their willingness to reconsider these costly restrictions and listening to the New Yorkers who expressed concerns. We hope this is an indicator of their commitment to prioritizing affordable and high-quality pharmacy benefits for the state’s residents. As DFS continues its work, we encourage them to continue listening to the voice of the people and exploring policies that genuinely lower costs, enhance transparency in the pharmaceutical industry, and safeguard the well-being of patients.
Phil Andrews is the President of the Long Island African American Chamber of Commerce.
