New Jersey lawmakers discuss pharmacy benefit managers' influence on drug costs
TRENTON, N.J. (PIX11) — A committee of Trenton lawmakers hosted a hearing to discuss the impact and influence Pharmacy Benefit Mangers, or PBMs, have on drug costs, including if they are steering those costs in the wrong direction.
'The only real way we're going to solve this complex and very expensive healthcare problem that we have in terms of cost, is to take cost out,' said Assemblyman Roy Freiman (D-NJ 16th District).
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PBMs are supposed to ensure access to affordable meds, but Freiman says they might contribute to higher prices, noting they are for-profit companies.
'There's a benefit associated with the services they provide,' said Freiman. 'The question is are they going amiss and do we have to bring in some reform to bring them back to their core mission.'
Freiman has a bill he calls the Patient and Provider Protection Act. Among other measures, the bill looks to ensure that PBMs do not agree to contracts with manufacturers that exclude the PBM from covering generic meds, which are cheaper.
New Jersey Citizen Action, a non-profit that advocates for low-income families, says other members of the supply chain can affect cost—not just PBMs.
'We've got to look at it holistically in order to get a strong and sustaining solution,' said Laura Widdell, NJCA Health Care Program Director. 'But, like I said, always happy when someone's looking into trying to make things better for our patients and consumers.'
The Pharmaceutical Care Management Association is a Washington, D.C.-based group that represents America's PBMs. It says PBMs cover nearly eight and a half million people in New Jersey and save patients and employers more than $1,100 per person per year. PCMA Assistant Vice President Heather Cascone said in a statement in part:
'As policymakers in New Jersey consider proposals to intervene in the market, we urge them to understand the PBM industry is not waiting for government mandates to meet evolving market needs. Instead, PBMs are addressing challenges to affordability and access by rolling out new, innovative programs to help plan sponsors tackle high drug costs, allowing patients to access the drugs they need. PCMA looks forward to continuing to work with the Legislature to explore policy solutions that will actually lower prescription drug costs for patients, employers, and unions in the State.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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