NJ S4698

Pharmacy benefits managers (PBMs) would be required to have a fiduciary duty to the financial interests of covered persons, meaning they must prioritize patients' financial interests above the interests of the health insurance carriers they contract with

The fiduciary duty requirement applies in addition to existing obligations that PBMs act with the same duties to covered persons as the health benefits plan or carrier they serve

PBMs must continue to act as agents in good faith and fair dealing, and all funds received must be used only pursuant to their contract with the health plan or carrier, including spread pricing funds

The bill applies to State Health Benefits Plan, School Employees' Health Benefits Plan, Medicaid, and self-insured ERISA plans

Takes effect 180 days after enactment and applies to all contracts and policies delivered, issued, executed, or renewed after that date