The New York Department of Financial Services (DFS) has issued a notice of proposed rulemaking activity in the State of New York related to Pharmacy Benefit Managers (“PBMs”) doing business in New York. It is significant and surprising that the DFS has allowed only 10 days for the public and interested stakeholders to comment on these significant rules and regulations. Although the time to comment is limited, interested stakeholders should contact Frier Levitt to prepare comments to the DFS regarding their concerns and recommendations regarding the proposed rules and regulations.
The timing of these proposed regulations is especially unexpected given that in parallel with the proposed regulations the New York Pharmacy Benefits Bureau has issued a Request for Comments and Data on PBMs Market Conduct Practices which may be submitted up until May 1, 2024, a time that comes well after the time period for commenting on the proposed rules and regulations has ended. These proposed regulations coincide with the DFS’s (the Department which oversees New York’s Pharmacy Benefits Bureau) prior withdraw of previously proposed PBM rules and regulations, which the Department referred to as “an initial set of PBM market conduct rules[.]” In introducing the proposed regulations and Request for Comments and Data, the DFS stated that “as the [DFS] weighs the best options to address [PBM] issues, the [DFS] seeks public comments, evidence . . . and personal experiences from any interested parties . . . related to PBM conduct in New York State[.]”
The DFS’s proposed PBM rules and regulations encompasses 15 pages of proposed directives that will impact PBMs as well as independent pharmacies and providers in New York and throughout the country. Among the proposed regulations are provisions related to a PBMs’ right to deny or terminate pharmacy contracts, provisions related to pharmacy audits, as well as pharmacy reimbursement requirements. Since many of these proposals favor PBMs, providers and especially independent pharmacies must take action.
The DFS will accept Comments on the proposed regulations from interested parties and stakeholders until Friday February 16, 2024. Contact Frier Levitt today to learn how you can participate directly in this process. Frier Levitt has prior experience submitting comments to the DFS and can assist interested parties and stakeholders in this process.
How Frier Levitt Can Help
Frier Levitt has represented thousands of pharmacies, pharmacists, and pharmacy technicians across the United States as well as various other providers and industry stakeholders with an emphasis on PBM issues as well as administrative agency action including at federal and state levels. Frier Levitt has also been active in working with interested parties in stakeholders in the legislative process including at the state level in submitting comments to agencies that embark on the administrative rulemaking process. Contact us to speak with an attorney to learn how Frier Levitt can assist with submitting comments on your behalf.
