New NJ Prescription Drug Registry Helps Residents Find Lowest Prices

NEW JERSEY — A set of new rules went into effect last week, aimed at curbing the high cost of prescription drugs in New Jersey by requiring drug companies and insurance carriers to report information on medication pricing to the state.

These new guidelines will allow the state Division of Consumer Affairs to track how drug prices are set, and why costs increase for residents along the supply chain.

Last July, Gov. Phil Murphy signed a package of bills into law to cap certain out-of-pocket costs, create a drug pricing transparency system across the supply chain, and establish greater oversight of third-party Pharmacy Benefit Managers.

Now, the Attorney General's Office has released a set of new rules that will apply to five separate groups: Drug manufacturers, insurance providers, pharmacy benefits managers, wholesalers, and pharmacy services administrative organizations (which provide a variety of services to smaller, independent pharmacies).

These five entities will all have to provide the state with information and data about drugs with significant price increases, and about new drugs that enter the market, as well as negotiated reimbursement rates for consumers.

A newly-created Drug Affordability Council, which is under the New Jersey Division of Consumer Affairs, will prepare an annual report to monitor what drives increases in prescription drug costs. Then, this council will use the information to recommend laws and policies that could lower prescription drug costs for residents.

Consumers can also access a prescription drug pricing registry to compare prices on the 150 most-prescribed drugs, and find the most cost-efficient option.

According to a 2023 study, more than half of New Jersey residents said they are “somewhat worried” or “very worried” about the price of prescription drugs. About one in four people said they were recently forced to skip a prescription, cut pills in half or skip a dose because they couldn’t afford it.

AG Matthew Platkin said these new rules will "allow us to gain greater insight into prescription drug pricing and a better understanding of how we can help advance the goal of prescription drug affordability and accessibility."

“The high cost of prescription drugs is a financial burden that disproportionately impacts the health and well-being of the most vulnerable among us: low-income families, the elderly, the uninsured, and people with disabilities,” Platkin said in a statement. “Until now, we’ve been kept in the dark about the main drivers of high prescription drug costs."

Here are some of the requirements under the new rules:

• Manufacturers must notify the Division of Consumer Affairs of price increases, and the launch prices of new drugs that meet statutory price thresholds. They must also report more detailed information on those drugs.

• Carriers must report to the information on spending for the top 25 prescription drugs and drug groups in certain categories, and how that will affect insurance premiums.

• Pharmacy Services Administrative Organizations (PSAOs) must report negotiated reimbursement rates to the DCA.

• Wholesalers and Pharmacy Benefits Managers must provide pricing, volume, and discount information for drugs and drug groups identified by the Division, based on information provided by the manufacturers, carriers, and PSAOs.