Relates to reducing pharmacy benefit manager costs

This bill requires pharmacy benefit managers (PBMs) to use a pass-through pricing model for health insurance plans, meaning they can only charge health insurers for actual drug costs, dispensing fees paid to pharmacies, and a capped administrative fee. PBMs must disclose and pass through all rebates, discounts, and other financial benefits they receive from drug manufacturers to health plans, and they are prohibited from using "spread pricing" (charging health plans more than the actual pharmacy payment plus a reasonable fee). The bill defines "pharmacy benefit manager" as entities that contract with pharmacies on behalf of health insurers or plans to manage drug benefits. These requirements apply to all health insurers offering coverage under New York's insurance laws and are subject to oversight by the state insurance department.