This bill aims to enhance access to lower-cost generic and biosimilar drugs within the State Health Benefits Program, School Employees Health Benefits Program, and the State Medicaid program. It establishes guidelines that prioritize the use of biosimilars when a covered person or enrollee is prescribed a brand drug they have not previously used, provided that a biosimilar is available. Additionally, it mandates that vendors and managed care organizations maintain an accurate and easily accessible list of all covered drugs, including any tiering structures and restrictions on obtaining these drugs.

Furthermore, the bill stipulates that if a generic or biosimilar drug is approved by the FDA and has a wholesale acquisition cost lower than that of its reference drug at the time of marketing, the relevant organizations must make the generic or biosimilar available on their formulary with favorable cost-sharing options. They are also prohibited from imposing prior authorization or other limitations that would hinder access to these drugs. However, the bill allows vendors and managed care organizations to discontinue coverage for a brand drug, generic drug, or biosimilar if deemed medically inappropriate or not cost-effective by formulary developers.