NY A09086

Creates a pilot program to control excessive prescription drug prices by establishing "referenced rates" based on pricing in Canada and other provinces, effective June 1, 2024.

Requires the Director of Employee Benefits to identify the five most costly prescription drugs (by net price times utilization) and submit the list to the superintendent by June 30, 2025.

Sets referenced rates as the lowest cost among wholesale acquisition cost and prices from Ontario, Quebec, British Columbia, and Alberta drug benefit programs; uses Canada's Patented Medicine Prices Review Board ceiling price if drug not found in those sources.

Prohibits state entities, health plans, and licensed pharmacies from purchasing referenced drugs above the set rate; requires manufacturers and distributors to negotiate in good faith and provides for $500,000 penalties or annual savings amount (whichever is greater) for violations.

Mandates that any savings from lower drug prices be used to reduce costs for plan members and requires the superintendent to report results, feasibility of expansion, and program recommendations to legislative leaders within 180 days of plan year conclusion.