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Bill

S 3381

Prohibits pharmacy benefits managers from operating pharmacy practice sites directly or indirectly.

2026-2027 Regular Session Introduced by Vin Gopal and 1 co-sponsor

Prohibits PBMs from owning or controlling pharmacy practice sites by July 1, 2027, to curb anticompetitive practices while allowing a limited special-permit process for rare drugs.

Introduced in the Senate, Referred to Senate Commerce Committee
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Bill Summary · S 3381

Summary of Bill S 3381 (New Jersey, Session 222)

Purpose and intent

  • Prohibits pharmacy benefits managers (PBMs) from owning or having a direct or indirect interest in, or holding a permit to operate, a pharmacy practice site under the New Jersey Pharmacy Practice Act.
  • Aims to reduce anticompetitive practices and conflicts of interest in the pharmacy market, improving patient access to prescription drugs and pharmacy services at fair prices.
  • Allows temporary relief for rare, orphan, or limited distribution drugs through a special permit mechanism, while phasing out PBM involvement in practice sites.

Key provisions and changes

1) Prohibition on PBMs and pharmacy practice sites
- PBMs may not acquire, hold, or have an interest in a permit to operate a pharmacy practice site (as defined by the New Jersey Pharmacy Practice Act, C.45:14-40 et seq.).
- Beginning July 1, 2027, PBMs are barred from direct or indirect ownership or control of pharmacy practice sites.

2) Board authority and enforcement
- The New Jersey State Board of Pharmacy must deny, revoke, or refuse to renew a permit for a pharmacy practice site that violates the act.
- The board may issue a special permit, under N.J.A.C.13:39-4.16, to allow continued operation for rare, orphan, or limited distribution drugs that would otherwise be unavailable due to the prohibition.
- Special permits can be considered before revoking or refusing to renew an existing permit, with a process to assess need for such drugs and determine duration.

3) Special-permit process and duration
- If a board assessment finds that a rare/ orphan/ limited distribution drug is unavailable and would be prohibited, the board must convert the existing regular permit to a special permit, valid for at least 90 days.
- The board must adopt rules under the Administrative Procedure Act to govern:
- How patients, pharmacies, and healthcare providers notify the board about unavailable drugs,
- How a pharmacy site requests a special permit,
- Timelines for board decisions on grant/denial of special permits,
- Procedures for emergency determinations based on patient need.
- The special-permit provision expires September 1, 2028.

4) Initial permit assessment and notices to stakeholders
- The board must conduct an initial assessment of all active permits as of the act’s enactment.
- By July 1, 2027, the board must send written notices (at least 90 days before that date) to each pharmacy practice site reasonably believed to violate the act.
- Notices must include:
- A list of PBMs with direct/indirect interests in or holding permits for pharmacy practice sites,
- A monitored contact phone number and email for board inquiries,
- A list of state pharmacies with active permits not reasonably expected to violate the act as of July 1, 2027, including each pharmacy’s name, phone, address, website, and email if available.
- If the board has a searchable website with required information, providing the website address may suffice in lieu of a separate list.

5) Notice to patients and providers
- Pharmacy practice sites that receive a notice of potential violation must, at least 60 days before July 1, 2027, inform patients and prescribing healthcare providers (for the past 12 months) that the site can no longer dispense the provider’s prescription order on or after July 1, 2027.
- Notices to patients/providers must include the same contact information and the list of compliant state pharmacies (as described above).

6) Effective dates
- Sections 1 (finding and declarations) and 3 (initial assessment and notices) take effect immediately.
- Section 2 (PBM prohibition on ownership of pharmacy practice sites) takes effect July 1, 2027.
- The board may begin anticipatory actions to implement Section 2 ahead of that date.

Affected parties

  • Pharmacy Benefits Managers (PBMs): Prohibited from owning or holding permits for pharmacy practice sites starting July 1, 2027.
  • State Board of Pharmacy: Responsible for enforcement, permits, special-permit determinations, and issuing rules.
  • Pharmacy practice sites: Potentially affected if PBMs have ownership or control; subject to permit denials, revocations, or required special-permit processes for rare drugs.
  • Patients and healthcare providers: Will receive notices regarding changes in dispensing capabilities and availability of certain drugs, and may need to be guided to alternative pharmacies.
  • Pharmacies with active permits: Assessed for compliance; those not expected to violate the act must be identified and listed.

Procedural and timeline aspects

  • Immediate effect for sections on findings and general intent; operative prohibition of PBM ownership begins July 1, 2027.
  • Initial permit assessment of all active permits due with written notices by July 1, 2027 (sent at least 90 days prior).
  • PBM-related violations trigger patient/provider notice requirements no later than 60 days before July 1, 2027.
  • Special-permit framework for rare/ortphan/limited-distribution drugs exists, with at least a 90-day minimum duration upon conversion, and an explicit expiration of September 1, 2028.
  • Board to adopt rules to implement sections involving notices, permit processes, timelines, and emergency determinations.

Notes

  • The bill seeks to curb PBM-driven market concentration and potential anticompetitive effects observed in federal inquiries, while preserving patient access to essential medications through a controlled special-permit mechanism for critical, hard-to-source drugs.

Compiled from official sources — confirm details with the bill’s official record.

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