Bill
A 6650
Overview: A 6650, Relates to third-party network contracts, REFERRED TO INSURANCE, Introduced: March 06, 2025Purpose and Intent: This bill aims to regulate the contractual relation
Overview: A 6650, Relates to third-party network contracts, REFERRED TO INSURANCE, Introduced: March 06, 2025
Purpose and Intent: This bill aims to regulate the contractual relationships between health insurance carriers and third-party networks, such as pharmacy benefit managers (PBMs) and other intermediaries. The primary goal is to increase transparency and protect consumers from potentially unfair or deceptive practices in these contractual arrangements.
Key Provisions:
- Requires health insurers to disclose the terms and conditions of their contracts with third-party networks, including any financial incentives or rebates.
- Prohibits third-party networks from imposing "gag clauses" that restrict health care providers from informing patients about lower-cost medication options.
- Mandates that third-party networks pass on a minimum percentage of any rebates or discounts received to the health insurer and, ultimately, to consumers.
- Grants the New York State Department of Financial Services (DFS) oversight and enforcement authority over these third-party network contracts.
Affected Parties and Impacts:
- Health insurance carriers that utilize third-party networks would be subject to the new disclosure and transparency requirements.
- Third-party networks, such as PBMs, would face restrictions on certain contractual practices and increased regulatory oversight.
- Consumers may benefit from greater transparency and potentially lower out-of-pocket costs for prescription drugs and other health care services.
Procedural and Timeline Considerations:
The bill has been referred to the Assembly Insurance Committee for further consideration. If enacted, the new requirements for third-party network contracts would take effect within a specified timeframe, likely 6-12 months after the law's passage.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
