New Jersey State Senators Vin Gopal and Raj Mukerji, both Indian-Americans, are joining forces with other legislators to advocate for action following a New York Times investigation into Pharmacy Benefit Managers (PBMs). The report highlights increasing drug costs and their impact on residents in the Garden State.
The Senators along with Assemblywomen Dr. Margie Donlon and Luanne Peterpaul and other lawmakers have pledged to regulate PBMs and ensure affordable prescription prices.
In a joint statement by lawmakers on July 15th, Senator Gopal emphasized “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. The role of PBMs is to be an intermediary between pharmacists, employers, and insurers to ensure the most cost-effective medication routes.”
Senator Gopal pointed out that if PBMs are exploiting state health benefits programs and Medicaid, as alleged by the New York Times investigation, taxpayers ultimately bear the financial burden for these private gains.
He said the situation underscores the urgent need to address the influence of PBMs on the current market while noting “We are committed to working together in the legislature to protect the well-being of consumers, employers, and independent pharmacists.”
“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. “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.”
Assembly Speaker Craig J. Coughlin said, “I join Sen. Gopal and other colleagues in the call for an investigation into potential market manipulation. While PBMs are pocketing billions in profits, patients are hit with inflated prices and unreliable coverage as well as outright abuse of the pharmacy community…”
According to the statement, Senator Gopal and other lawmakers played a key role in “passing historic legislation” about PBMs in 2023. They are optimistic that these laws, which will take effect in January 2025, will positively impact the community.
“The articles from the New York Times and Wall Street Journal serve as crucial wake-up calls to curb the anti-competitive practices of pharmacy benefit managers (PBMs). The PBM business model is designed to artificially inflate drug prices and extract billions of dollars in discounts from drug manufacturers…” stated Director of Government Affairs for Independent Pharmacy Alliance, Anthony Reznik.
