Newly-signed law will give patients more access to medicines and information

October 1, 2024 Brooklyn Eagle Staff

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BROOKLYN & STATEWIDE — GOV. KATHY HOCHUL SIGNED SEN. ANDREW GOUNARDES’ BILL S9040/A9764 INTO LAW, aimed at loosening Pharmacy Benefit Managers’ (PBMs) control over medical costs by removing the “gag clause.”

The reform aims to increase patient access to medications, reduce costs and support independent pharmacies struggling with reimbursement issues. The clause previously banned pharmacists from discussing reimbursement rates with customers, limiting transparency. For example, they were prohibited from telling a patient that a particular drug would result in a negative reimbursement for a pharmacy, despite the fact that such reimbursement was likely the reason that the pharmacist couldn’t stock the patient’s medication. Consequently, pharmacies have not stocked certain medications, creating access problems for patients who don’t understand why they can’t obtain the drugs they need.

The new law allows pharmacists to openly share information about reimbursement rates, empowering patients to understand drug pricing better and advocate for fair rates. The reform also ensures small and independent pharmacies can continue to operate by protecting them from penalties imposed by PBMs.

“New Yorkers deserve easy, affordable access to the medications they need,” said Gounardes in a statement on Monday, Sept. 30. “But for decades, pharmacy benefit managers have held patients hostage, serving as unwanted middlemen who stand between patients, doctors and pharmacies, dictating what drugs patients can receive and how much money pharmacists can get for them,” continued Gounardes.

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