Prohibits pharmacy benefit manager from using spread pricing as model of prescription drug pricing; requires transparency in provision of pharmacy benefits management services.

This bill prohibits pharmacy benefit managers in New Jersey from using spread pricing, a model where patients pay more at the pharmacy counter than the plan's negotiated rate, and requires full transparency in how these companies are compensated. Under the new rules, any rebates or fees received by these managers must be passed entirely to the health plan or carrier, while the managers can still charge a standard administrative fee for their services. The legislation also mandates that carriers closely monitor the managers' activities and ensures that patients never pay more at the point of sale than they would if they bought the medication without insurance. To enforce these changes, pharmacy benefit managers must submit detailed financial statements and audits to the state department on a quarterly and annual basis, and the department will publish a yearly report on how these pricing practices affect overall health plan costs.