NY Bill Targeting Pharmacy Benefit Managers Faces Union Pushback

May 27, 2025, 9:00 AM UTC

Unions are seeking to thwart New York legislation that would place new restrictions on drug middlemen who are coming under greater scrutiny at the state and federal level.

Pharmacy benefit managers—which negotiate prescription drug prices among pharmaceutical companies, insurers and pharmacies—would have to pay independent pharmacies a minimum rate for filling prescriptions under the measure (A.B. 5882). That could lead to higher consumer costs, according to PBMs.

Groups representing New York City teachers and municipal workers oppose the bill as written, complicating its chances for passage before the session ends in mid-June.

“We cannot support legislation that could ...

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