Gov. Phil Murphy signs legislation designed to lower the cost of prescription drugs and cap co-pays for EpiPens, insulin and asthma inhalers.
WEST ORANGE — Gov. Phil Murphy was in the township to sign a package of legislation designed to help lower the cost of prescription drugs, including capping co-pays for EpiPens, insulin, and asthma inhalers for New Jersey consumers on State-regulated health plans.
“This is a huge step forward in our ongoing efforts to deliver much-needed relief to countless families throughout our state who are struggling to afford critical medications,” Murphy said. “I am proud to sign nation-leading legislation that will make a real difference in the lives of New Jerseyans as we continue to work towards making prescription drugs and other health care services more affordable and accessible to everyone.”
The signing took place at the James A. Degnan House for Seniors at 430 Main St. in West Orange on Monday, July 10. Among those in attendance were Mayor Susan McCartney, Council President Tammy Williams and Councilwomen Susas Scarpa. Former West Orange Mayor and current NJ State Assemblymen John McKeon, who was one of the sponsors of the legislation. The governor’s office said West Orange was chosen as the location for the signing in recognition of McKeon, who was one of the primary sponsors of the legislation.
The three bills the governor signed are:
• S-1614 – Caps out-of-pocket costs for many residents by extending Medicare’s new $35/month insulin out of pocket cap to state-regulated markets and NJ public employee plans, as well as capping out of pocket costs for EpiPens and asthma inhalers at $25 and $50 respectively for a month’s supply.
• S-1615 – Creates a new data and transparency system within the Division of Consumer Affairs to collect, analyze, and report on the entire process of drug pricing across the supply chain in an effort to gain greater insight into drugs with high price increases and launch prices. The bill also establishes a Drug Affordability Council to formulate legislative and regulatory policy recommendations that help advance the goal of prescription drug affordability and accessibility.
• A-536/2841 – Establishes greater oversight of Pharmacy Benefit Managers (PBMs), the third-party companies who manage many prescription-drug plans, to prevent certain practices that drive up costs. This bill requires rebates to be used to lower premiums and out-of-pocket costs for consumers and prevents the practice of spread pricing when a PBM pockets the difference between what it charges a health plan and reimburses a pharmacy. It also requires PBMs to apply for a license from the state Department of Banking & Insurance to strengthen regulatory oversight.
Murphy also included funding in the Fiscal Year 2024 budget to expand eligibility for the Pharmaceutical Assistance for the Aged and Disabled (PAAD) program, which further cuts the costs of life-enhancing and life-saving prescription drugs for seniors and residents with disabilities. A companion bill signed on the same day as the budget, in addition to authorizing the eligibility expansion, will help get even more eligible New Jerseyans enrolled in both PAAD and the Senior Gold Prescription Discount program going forward.
“These reforms help to address the burdensome high cost of prescription drugs that consumers face across our state,” said New Jersey Department of Banking and Insurance Acting Commissioner Justin Zimmerman.
“The high cost of prescription medication jeopardizes the health and well-being of the most vulnerable among us: low-income families, the elderly, the uninsured, and people with disabilities,” said Attorney General Matthew J. Platkin.
“AARP commends Gov. Murphy and the NJ Legislature for enacting legislation today that will meaningfully respond to the skyrocketing costs of prescription medications,” said Crystal McDonald, AARP New Jersey Associate State Director of Advocacy.
“It’s been a long road, but we finally have a law that puts us on the path of making prescription drugs more affordable for New Jerseyans,” said New Jersey Citizen Action Healthcare Program Director Laura Waddell. “A Drug Affordability Council will help rein in prices at the pharmacy counter and ensure patients don’t have to choose between paying for lifesaving medicines or for other essential needs.”
Brian Oliveira, executive director of Garden State Pharmacy Owners association, said his organization was proud to support the package of bills.
“Many of the new laws’ provisions are unparalleled and incredibly forward-thinking,” Oliveir said.
Sherry Pomeroy, a Faith Community Nurse, said; “Nurses for America applauds Governor Murphy’s progressive and innovative package of bills to advance drug affordability and access in New Jersey.”
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