NJ attorney general joins bipartisan coalition backing rule to increase drug pricing transparency
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport joined a bipartisan coalition of attorneys general supporting a proposed federal rule aimed at increasing transparency from pharmacy benefit managers, officials said.
The coalition submitted comments to the U.S. Department of Labor backing the rule, which would require pharmacy benefit managers, or PBMs, to disclose how they generate revenue when managing prescription drug plans for employer-sponsored health coverage.
PBMs act as third-party administrators for prescription drug programs and play a significant role in negotiating drug prices, determining coverage and managing reimbursements.
“We all feel the financial pain of rising drug prices, but it doesn’t have to be this way,” said Attorney General Davenport. “We’re standing together with a bipartisan coalition of attorneys general in urging the federal government to increase oversight over PBMs. Our office is committed to ensuring that PBMs are following the law—and to hold them accountable when they don’t.”
The proposed rule would require PBMs to report financial details to employers twice a year and allow audits, addressing concerns that businesses often lack insight into how drug pricing decisions are made.
Officials said approximately 136 million Americans receive health coverage through employer-sponsored plans, making transparency in pricing practices a key issue.
The coalition also urged federal regulators to clarify that the rule would not override state laws governing PBMs and to coordinate with state authorities when enforcing regulations.
