A5578

Establishes a Medicaid preferred drug list in New Jersey to control drug costs and improve outcomes.

The bill mandates the Division of Medical Assistance and Health Services to create and manage a preferred drug list for the State Medicaid program. This list will include drugs and non-drug items chosen based on clinical and economic merits. Pharmacy benefits managers are prohibited from negotiating, administering, or retaining rebates on products on the preferred drug list. The Division is authorized to seek supplemental rebates from drug manufacturers to control costs and improve health outcomes.