New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A2840

Introduced
2/28/22  
Refer
2/28/22  
Refer
3/14/22  
Refer
5/26/22  

Caption

Establishes certain data reporting requirements for prescription drug supply chain; establishes Drug Affordability Council; appropriates $1,500,000.

Impact

The provisions of A2840, if enacted, will significantly impact the way prescription drugs are priced and reported within New Jersey. Manufacturers, wholesalers, pharmacy benefit managers, and other entities involved in the drug supply chain will be required to disclose detailed pricing information, including wholesale acquisition costs, rebates, and discounts. This data will be used to inform the Drug Affordability Council, which is tasked with making recommendations about drug pricing policies and consumer access. As a result, the bill aims to create a more informed and arm transparency in the pharmaceutical pricing environment, which may reduce the financial burden on patients.

Summary

A2840 is a legislative measure in New Jersey aimed at addressing the high costs of prescription drugs. The bill establishes certain data reporting requirements for the prescription drug supply chain and creates a Drug Affordability Council. The legislation seeks to bring greater transparency to drug pricing in order to enhance the affordability of medications for consumers. Additionally, it allocates $1,500,000 to support the implementation of these measures. The bill is part of a broader effort to tackle rising healthcare costs and improve access to essential medications for residents of New Jersey.

Sentiment

The sentiment surrounding A2840 has generally been positive among proponents who argue that the bill is a necessary step in combating the rising costs of prescription drugs. Advocates highlight the potential for increased transparency and accountability in drug pricing, as well as the formation of the Drug Affordability Council, which could directly influence policy decisions to the benefit of consumers. However, there are concerns from pharmaceutical companies and some industry stakeholders about the potential regulatory burden and the implications for innovation in drug development.

Contention

While A2840 has received support from various consumer advocacy groups, opponents have raised concerns about the administrative challenges posed by the new data reporting requirements. Critics argue that the bill could lead to unintended consequences, such as increased costs for manufacturers, which might be passed on to consumers. Additionally, there are fears that the focus on pricing transparency might detract from addressing underlying issues related to the accessibility and quality of healthcare services. The ongoing debate highlights the intricate balancing act of improving drug affordability while maintaining a viable market for pharmaceutical innovation.

Companion Bills

NJ S1615

Same As Establishes certain data reporting requirements for prescription drug supply chain; establishes Drug Affordability Council; appropriates $1,500,000.

Previously Filed As

NJ A3265

Establishes certain prescription drug data reporting requirements for hospitals.

NJ HB483

Prescription Drug Affordability Board; established.

NJ SB271

Prescription Drug Affordability Board; established.

NJ HB1724

Prescription Drug Affordability Board; established, drug cost affordability review, report.

NJ A3406

Establishes prescription drug pricing disclosure requirements and measures to reduce prescription drug costs.

NJ SB212

Enacting the prescription drug cost and affordability review act to establish the prescription drug pricing board and prescription drug affordability stakeholder council to review the cost of prescription medications and establish upper payment limits for certain prescription drugs.

NJ HB645

Relative to data collection and reporting requirements of the prescription drug affordability board.

NJ HB5149

Establishing the West Virginia Prescription Drug Affordability Board

NJ SB140

Exempt Drugs from Prescription Drug Affordability Board Reviews

NJ HB890

To enact sections 3901.85, 3901.851, 3901.852, 3901.853, 3901.854, 3901.855, 3901.856, 3901.857, and 3901.858 and to repeal section 125.95 of the Revised Code to establish the Prescription Drug Affordability Board and Prescription Drug Affordability Stakeholder Council, to authorize the establishment of upper payment limits on certain prescription drug products, to repeal the law establishing the Prescription Drug Transparency and Affordability Advisory Council, and to name this act the Prescription Relief and Inflation Cost Elimination or P.R.I.C.E. Act.

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