Governor Murphy Combats Rising Prescription Costs by Enacting New Law

Statement from AARP New Jersey Associate State Director for Advocacy Crystal McDonald

TRENTON, NEW JERSEY – “Today, Governor Murphy signed S2690, taking an important step to combat rising prescription prices for all New Jersey residents. The bill passed with unanimous support from the New Jersey Legislature in June 2019.

By enacting this new law, which will take effect in 90 days, Governor Murphy and the New Jersey legislature are protecting consumers from being overcharged for prescription medications and ensuring pharmacists can keep their customers informed about lower cost options.

Prior to this law, Pharmacy Benefit Managers (PBMs) and insurance carriers could prevent pharmacists from informing customers about less expensive drug options and PBMs and insurers could “claw back” the difference between higher copays charged to customers and what the drug actually costs. Ending these practices is a common sense solution to lower prescription costs, protect people of all ages from unfair prices and help keep their medicines within reach.

As prescription drug prices continue to skyrocket, many Garden State residents are forced to choose between life-saving medications or paying rent and buying food. In 2016, 26 percent of New Jersey residents stopped taking medication as prescribed due to cost. With the enactment of this new law, Governor Murphy and the NJ Legislature recognize the need to reign in high drug costs in the state – especially as the average older American takes 4.5 prescriptions each month.

AARP applauds Governor Murphy, as well as Senators Ruiz, Cryan, Beach, Turner and Andrzejczak and Assemblymen McKeon, Dancer and Land for their leadership on this issue and for helping to protect all residents across the state from unfair prescription drug prices.”