NJ Senator Vin Gopal announces initiative to manage Pharmacy Benefit Managers and rising drug costs

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In the light of recent findings from a New York Times investigation on Pharmacy Benefit Managers (PBMs), a group of New Jersey lawmakers led by Indian American State Senator Vin Gopal, and joined by independent pharmacists announced they were coming together to address and manage the impact of PBMs and the crisis of rising drug costs on New Jersey.

In a press release July 15, 2024, Sen.Vin Gopal, Sen. Raj Mukherji Assemblywoman Dr. Margie Donlon, and several New Jersey lawmakers affirmed their commitment to affordable prescription costs and regulating PBMs.

“We are proud to convene members of State Senate and Assembly leadership to take a comprehensive look at the status of PBMs and how they impact consumers, employers, and independent pharmacists,” Sen. Gopal is quoted saying.

The role of PBMs is to be an intermediary between pharmacists, employers, and insurers to ensure the most cost-effective medication routes, he pointed out. “If state health benefits programs and Medicaid are being taken advantage of by PBMs or given increasingly high premiums, as alleged by the New York Times investigation, those costs are footed by taxpayers for private gain. There is an urgent need to address the impact of PBMs on the current market,” Gopal said, adding, “We are committed to working together in the legislature to protect the well-being of consumers, employers, and independent pharmacists,” Gopal along with his District 11 colleagues Assemblywoman Margie Donlon, and Assemblywoman Luanne Peterpaul (Monmouth).

In their statements, several lawmakers announced their support for Gopal et al’s initiative including Senate President Nick Scutari (Somerset, Union); Assembly Speaker Craig J. Coughlin (Middlesex); Senate Health, Human Services and Senior Citizens Committee Chairman Joe Vitale (Middlesex), and others.

Senators Gopal, Scutari, Vitale, Singleton, and Greenstein were integral to passing historic legislation regarding PBMs last year, the press releases noted. The group of lawmakers is hopeful that the laws have a positive impact on the community when they go into effect in January 2025, it added.

“Patients, physicians, pharmacists, insurers, and premium payers alike are being harmed by PBMs’ exploitative actions, and our past actions to bring equilibrium apparently aren’t enough,” said Senator Raj Mukherji (Hudson). “Our independent pharmacies are facing unsustainable financial pressures and existential threats to survival, owing largely to unconscionable practices by PBMs. We will continue prioritizing drug affordability and monitoring the well-being of our independent pharmacies to ensure that New Jerseyans are not taken advantage of by PBMs,” Sen. Mukherji added.

Organizations like the Garden State Pharmacy Owners, the Pharmacists Association, and the Independent Pharmacy Alliance also expressed their support.