Requires pharmacy benefits manager compensation to be based on bona fide service fee.

This New Jersey bill requires pharmacy benefits managers to be paid a flat, itemized service fee rather than commissions tied to drug prices or sales volumes. It directly affects insurance carriers and pharmacy benefits managers by mandating that their compensation reflects the fair market value of actual services provided, excluding any pass-through costs to patients. The law also establishes strict reporting rules, requiring carriers to include detailed actuarial memorandums and supporting records in their rate filings to verify these fee calculations. By prohibiting fees based on drug costs, rebates, or referral volumes, the measure aims to ensure transparency and prevent conflicts of interest in prescription drug benefit administration.