New New Jersey Prescription Drug Registry Helps Residents Find the Lowest Prices

NEW JERSEY – A set of new rules took effect last week aimed at curbing the high cost of prescription drugs in New Jersey by requiring pharmaceutical companies and insurance carriers to report drug price information to the state.

These new guidelines will allow the state's Division of Consumer Affairs to track how drug prices are set and why costs are rising for residents along the supply chain.

Last July, Gov. Phil Murphy signed a legislative package to cap certain out-of-pocket costs, create a drug price transparency system across the supply chain, and provide greater oversight of third-party pharmacy benefit managers.

Now, the Attorney General's Office has released a new set of rules that apply to five different groups: drug manufacturers, insurance providers, pharmacy benefit managers, wholesalers, and pharmacy service management organizations (which provide various services to smaller, independent pharmacies). ).

These five agencies must provide the state with all information and data on drugs with significant price increases and on new drugs entering the market, as well as negotiated reimbursement rates for consumers.

A newly created Drug Affordability Council, which operates under the New Jersey Division of Consumer Affairs, will produce an annual report to monitor what is causing the cost of prescription drugs to rise. This council will then use the information to recommend laws and policies that could reduce prescription drug costs for residents.

Consumers can also access a prescription drug price registry to compare prices of the 150 most commonly prescribed medications and find the most cost-effective option.

According to a 2023 study, more than half of New Jersey residents said they were “somewhat worried” or “very worried” about the price of prescription drugs. About one in four said they had recently been forced to skip a prescription, cut the pill in half or skip a dose because they couldn't afford it.

AG Matthew Platkin said these new rules will “allow us to gain greater insight into prescription drug pricing and better understand how we can help advance the goal of prescription drug affordability and accessibility.”

“The high cost of prescription drugs imposes 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,” Platkin said in a statement. “Until now, we have been left in the dark about the root causes of high prescription drug costs.”

Here are some of the requirements under the new rules:

• Manufacturers must inform the Department of Consumer Affairs of price increases and the launch prices of new drugs that meet the legal price thresholds. You must also report more detailed information about these medicines.

• Carriers must report to the Information information on spending on the top 25 prescription drugs and drug groups in specific categories, as well as how this affects insurance premiums.

• Pharmacy Services Administrative Organizations (PSAOs) must report negotiated reimbursement rates to the DCA.

• Wholesalers and Pharmacy Benefits Managers must provide price, quantity and discount information for drugs and drug groups determined by the department based on information provided by manufacturers, carriers and PSAOs.