Requires Treasury to regularly review contract and performance of pharmacy benefits manager for SHBP and SEHBP.
Impact
The implementation of this bill is expected to enhance accountability and transparency concerning the performance of pharmacy benefits managers involved with state health programs. By formally assessing the contracts and their outcomes, the legislature aims to ensure that the agreements made are cost-effective, beneficial, and in line with operational and financial objectives. The requirement to publish a report on the findings will also provide public access to information about the health benefits management, potentially leading to more informed discussions about state health policies.
Summary
Assembly Bill 4238 mandates that the New Jersey Department of the Treasury conduct regular reviews of the contract and performance of the pharmacy benefits manager for the State Health Benefits Program (SHBP) and the School Employees' Health Benefits Program (SEHBP). The bill requires the Division of Pensions and Benefits to perform these reviews starting from the year the bill takes effect and every five years thereafter. This review aims to evaluate the effectiveness and cost-efficiency of the pharmacy benefits manager in delivering services to state employees and school employees.
Contention
While the bill may be broadly supported by those advocating for increased oversight of public health spending, it faces potential opposition from stakeholders in the pharmacy benefits management industry. Concerns may arise regarding the implications of regular evaluations and the potential for increased regulatory burdens on pharmacy benefits managers. Nevertheless, proponents emphasize that this scrutiny is essential for safeguarding public funds and ensuring that health benefits provided are both effective and efficient for the state's employees.