Committee moves amendments on PBM reform bill after hours of testimony from PBMs, pharmacies and consumer groups

The Financial Institutions and Insurance Committee considered proposed amendments to Assembly Bill 4953 — described in the hearing as the Patient and Provider Protection Act — and voted to move amendments only after extensive testimony from stakeholders on both sides.

Opponents, including the Pharmaceutical Care Management Association (PCMA) and PBM vendors, warned the amendments could raise costs meaningfully, pointed to nationwide analyses of a "delinking" concept and urged the committee to wait for fiscal scoring and the implementation of recently enacted PBM regulations. PCMA witnesses provided high‑level cost estimates and asked for an OLS fiscal estimate before the committee advanced changes.

Supporters — including independent pharmacists, the Independent Pharmacy Alliance and consumer groups such as New Jersey Citizen Action — argued the amendments correct anti‑competitive PBM practices, would improve transparency, and protect independent community pharmacies. Industry witnesses and independent pharmacists debated the significance of network definitions (changes from "independent" to "unaffiliated" pharmacies), reimbursement practices, and whether PBMs have visibility into pharmacy acquisition costs.

Panelists and the chair discussed scope questions about including ERISA‑governed self‑funded plans. Health‑plan representatives said the proposed scope could triple the impacted population; independent pharmacies countered that New Jersey law and a recent Supreme Court decision permit state regulation in this area. Consumer advocates urged a Drug Affordability Council review to assess unintended cost consequences.

After questions and extended debate, the committee voted on the amendments only; one member abstained and the amendments passed, and the chair adjourned the meeting.