Establishes three-year Medicaid demonstration project to pay for certain drugs according to value-based system.

This bill creates a three-year pilot program for New Jersey's Medicaid program to pay for certain high-cost prescription drugs based on their real-world effectiveness, rather than a fixed price. The state will select at least three drugs with measurable health outcomes (like reduced hospital visits) that are among the most expensive in Medicaid, and negotiate payments with manufacturers tied to patient results. Medicaid managed care organizations must participate, and the program requires agreements that adjust reimbursement based on observed drug performance. After three years, the state must report results and recommend whether to continue or expand the program, using de-identified patient data to protect privacy.