This bill aims to regulate the practices of pharmacy benefits managers (PBMs) and health insurance carriers in New Jersey, particularly addressing the issue of "steering," which involves directing prescriptions to affiliated pharmacies. The legislation prohibits PBMs from engaging in steering practices and imposes a 10% surcharge on those that do, based on the total amount reimbursed to pharmacies in the previous year. Additionally, PBMs are required to provide annual reports to the Commissioner of Banking and Insurance, detailing their prescription drug claims and confirming whether they engaged in steering. The bill also mandates that PBMs cannot impose certain restrictions on pharmacists, such as preventing them from sharing cost information with patients or charging copayments that exceed the pharmacy's submitted charges.

Furthermore, the bill establishes transparency requirements for PBMs, including the obligation to report drug pricing data every four months and to refrain from requiring pharmacy accreditation standards that exceed federal and state regulations. It also stipulates that PBMs must not engage in the practice of medicine unless specific conditions are met regarding the qualifications of physicians involved in prior authorization processes. Overall, the legislation seeks to enhance consumer protection, reduce drug costs, and ensure fair practices within the pharmacy benefits management sector.