NJ S1390

Requires all compensation (rebates, discounts) paid by pharmaceutical manufacturers to pharmacy benefits managers (PBMs) from drug price negotiations to be remitted to the insurance carrier rather than retained by the PBM

Mandates carriers use manufacturer compensation to either lower premiums for covered persons or provide direct remittance to consumers at the point of sale to reduce out-of-pocket costs

Requires carriers to file annual reports with the commissioner demonstrating compliance with the prescription drug savings pass-through requirements

Defines "compensation" as any direct or indirect financial benefit, excluding payments by manufacturers for performance of services

Takes effect 180 days after enactment and applies to health benefits plans issued or renewed on or after January 1 of the following calendar year