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," where PBMs direct 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 for prescription drugs 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 whether they engaged in steering, with the data being confidential but subject to aggregate reporting.

The bill also outlines several prohibitions for PBMs, including preventing them from restricting pharmacists from sharing cost information with patients, charging excessive copayments, and sharing patient-identifiable data for commercial purposes. Furthermore, it mandates that PBMs cannot impose accreditation standards that exceed federal and state requirements and must issue reports every four months on drug reimbursements relative to national averages. The legislation also stipulates that PBMs cannot engage in the practice of medicine unless specific conditions regarding physician involvement are met. Overall, the bill seeks to enhance transparency and protect consumers in the pharmacy benefits landscape.