Senate Passes Bill to Send Majority of Drug Rebates to Patients at Point of Sale, Sponsors Say

The New York State Senate on Feb. 23 approved a measure, transcribed in the floor record as S2128, that sponsors described as requiring a substantial share of negotiated prescription drug rebates to flow directly to patients at the point of sale.

Senator Jackson urged colleagues to support the bill, saying ‘‘if a rebate is negotiated in a patient's name, it must reach that patient.’’ Sponsors described the legislation as balancing premium stability for plans while ensuring that ‘‘meaningful savings reach the place that matters most, the pharmacy counter.’’ Senator Jackson and other supporters said the change is aimed at restoring fairness and transparency to a supply chain that they say currently shields discounts from patients.

Senator Myrie framed the measure as a response to ‘‘corporate consolidation driving up prices’’ for everyday New Yorkers and said the bill inserts sunlight into a system that disadvantages patients. Senator Borrello, who said he had voted no on a prior version, explained he switched to a yes vote after hearing from small pharmacies; he characterized pharmacy benefit managers (PBMs) as having become "a parasite that gobbled up all of those rebates" and said that PBM practices have contributed to pharmacy closures, particularly in rural areas.

Senator Fernandez explained the bill targets anti-competitive ‘‘pay-for-delay’’ agreements and other practices that keep generics off the market, saying stronger enforcement is needed so lifesaving medicine does not remain out of reach.

According to floor remarks, the bill includes a requirement that more than 85% of prescription drug rebates be returned to patients at the point of sale; sponsors said the measure preserves plans' ability to stabilize premiums while ensuring savings reach patients. The clerk announced the roll-call result and recorded the measure as passed on the floor.

Several other calendar items were read and passed in succession with roll calls following the chamber's customary procedures. An appeal of the chair on a proposed amendment to create a domestic-violence offender registry was heard and the chair's ruling was sustained after a show-of-hands vote; the Senate restored a separate bill to the noncontroversial calendar by unanimous consent before adjourning.

The bill as read on the floor is recorded under the insurance/health-care entries for the day. The official bill text and the enacted chapter law citation were not provided in the transcript excerpt; reporters should consult the legislative clerk's office or the Senate bill docket for the final printed bill number and enrolled chapter.