Provides for procurement by State of pharmacy benefits manager, automated reverse auction services, and claims adjudication services.
Summary
This bill requires the State, through the Division of Purchase and Property in the Department of the Treasury, to procure on an expedited basis three related professional services for the State Health Benefits Program and the School Employees’ Health Benefits Program: technical assistance for evaluating pharmacy benefits manager bids, online automated reverse auction services, and automated claims adjudication/auditing services. It also authorizes the State to procure the pharmacy benefits manager itself through this expedited process.
To speed the procurement, the bill relaxes or modifies several existing public contracting procedures, including advertising requirements, challenge timeframes, State Comptroller review timing, and certain bidding and submission rules. The bill allows the division to waive or modify other laws or regulations that would interfere with the procurement, and it requires a public report within 60 days after the contract award describing the reverse auction results, savings achieved, and any procedural deviations. The act takes effect immediately and expires after the next pharmacy benefits manager contract is awarded.
Impact
The bill would temporarily alter State procurement law for a single pharmacy benefits manager contracting cycle, creating a special expedited process for SHBP and SEHBP-related pharmacy services. It affects the Division of Purchase and Property, the State Comptroller review process, and various public bidding and advertising requirements, while authorizing limited waivers of conflicting laws or regulations. The practical effect is to streamline and centralize how the State selects a PBM and related auditing and reverse-auction vendors, with the stated goal of improving price comparison and generating savings for State and school employee health plans.
Sentiment
The bill appears generally favorable in purpose, with its stated emphasis on cost savings, transparency after award, and use of market-based tools such as reverse auctions and claims auditing. The bill text itself points to a prior 2016 law as a successful precedent, citing an estimated $40 million in savings for the State Health Benefits Program. No committee transcripts or recorded votes were provided, so there is no additional evidence of formal support or opposition beyond the bill’s pro-efficiency framing.
Contention
The main points of contention are likely to be the bill’s broad relaxation of normal procurement safeguards and the authority it gives the division to modify or waive laws and regulations to expedite the award. Potential concerns include reduced public notice, shortened review periods, altered bid procedures, and less opportunity to challenge specifications. Supporters would likely emphasize savings and faster procurement, while critics may focus on transparency, fairness, and oversight risks in a high-value health benefits contract.