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 mandates that when a covered person is prescribed a brand drug they have not previously used, they should receive a biosimilar if available. Additionally, vendors and managed care organizations are required to maintain and publish an accurate and accessible list of all covered drugs in their formularies, 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 respective organizations must make the generic or biosimilar available on their formulary with more 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.