NJ A4599

Establishes a three-year Medicaid demonstration project requiring the Department of Human Services to enter into value-based purchasing or rebate agreements with manufacturers of at least three prescription drugs, where reimbursement is tied to observed patient outcomes

Selected drugs must have readily measurable therapeutic outcomes using existing data systems and be among the highest-cost drugs in New Jersey Medicaid aggregate spending

Requires all Medicaid managed care organizations to participate in the demonstration project, with specific obligations outlined in their contracts with the department

Commissioner of Human Services must report to the Governor and Legislature after the project expires, including performance results and recommendations on whether to re-establish or expand the program

Takes effect on the first day of the seventh month following enactment and requires the Commissioner to apply for necessary federal waivers to secure Medicaid financial participation