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 in the previous year. Additionally, PBMs are required to report annually to the Commissioner of Banking and Insurance regarding their steering practices and provide detailed data on prescription drug claims. 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 that PBMs must not require pharmacy accreditation standards that exceed federal and state requirements and must issue reports every four months on drug reimbursements relative to the national average drug acquisition cost. It also stipulates that PBMs cannot engage in the practice of medicine unless specific conditions are met regarding the qualifications of advising physicians. Overall, the legislation seeks to enhance transparency, reduce conflicts of interest, and ensure fair practices in the pharmacy benefits management sector.