Prohibits the ownership, operation or control of pharmacies by pharmacy benefit managers

2025 Regular Session Introduced by Leroy Comrie and 5 co-sponsors

Prohibits any entity from owning or controlling both a pharmacy and a PBM, requiring divestment within three years after enactment.

REFERRED TO HIGHER EDUCATION

Purpose and intent

This bill amends the Education Law to prohibit pharmacy benefit managers (PBMs) from owning, operating, or controlling any part of a pharmacy, and vice versa.

The core aim is to prevent cross-ownership or control between pharmacy providers and PBMs, addressing potential conflicts of interest and market concentration in the pharmacy supply chain.

Key provisions

Section 6808 (new subdivision 3) – Prohibitions and divestment

a. Prohibition: It shall be unlawful for any person, firm, corporation, or association to:

Directly or indirectly own, operate, or control the whole or any part of a pharmacy, and
Directly or indirectly own, operate, or control the whole or any part of a pharmacy benefit manager (PBM),
This applies to the same entity (no ownership/operation/control of both a pharmacy and a PBM, whether in part or in whole).

b. Divestment timeline: Within three years after the law takes effect, any entity found in violation of the prohibition must divest its ownership, operation, or control of the pharmacy to comply with the ban.

c. Definitions: The term “pharmacy benefit manager” has the same meaning as that found in section 280-a of the Public Health Law.

Section 2 – Effective date

The act states that it shall take effect immediately upon enactment.

Who/what is affected

Entities involved in the ownership, operation, or control of:

Pharmacies (retail, clinical, or otherwise that dispense prescription medications)
Pharmacy Benefit Managers (PBMs), as defined by public health law

The prohibition would apply to individuals, firms, corporations, or associations that have any level of ownership or control over both a pharmacy and a PBM.

Procedural and timeline aspects

Referred to the Senate Committee: Higher Education (as of February 17, 2026).

Enforcement/Compliance: If an entity is found in violation, it must divest within three years of the law taking effect.

Immediate effect: The bill states that it shall take effect immediately, meaning some provisions could be in force right away, with divestment requirements phased in over three years.

Potential impact and considerations

Market structure: The bill would reduce vertical integration between PBMs and pharmacies in New York, potentially increasing competition among pharmacies and limiting PBMs’ ability to influence pricing, rebates, and network arrangements via ownership control.

Consumer impact: Could affect prescription drug pricing dynamics, access, and formulary management depending on how PBMs and pharmacies respond to divestiture requirements.

Regulatory compliance: Affected entities would need to audit ownership and control structures to ensure no indirect ownership or control of both entities; plan for phased divestment within three years.

Administrative enforcement: The bill relies on state education law for governance and would likely require monitoring by higher education or related regulatory bodies to enforce divestment.

Bill