S 1351 New York Senate · 2025 Regular Session

Relates to requiring a referenced rate for prescription drugs

S 1351 creates a pilot program to control prescription drug costs by setting maximum prices ("referenced rates") based on the lowest prices for the same drugs in four Canadian provinces (Ontario, Quebec, British Columbia, and Alberta). It applies to state health programs and pharmacies purchasing drugs for state-funded health plans, requiring them to pay no more than the referenced rate for the five most expensive drugs identified by the state. Any savings generated from this pricing cap must be directly passed to consumers through reduced costs. The pilot runs for one year, with a report due to state leaders assessing its feasibility for broader expansion.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 9, 2025 Last action Jan 30, 2026

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What changed between versions

S1351 → S1351A · 6 edits

MODERATE

The bill was amended to add legislative findings explaining why prescription drug prices are a problem, update definitions to align with state laws, and expand the pilot program to include ERISA plans that voluntarily opt-in to the referenced rate system.

Scope change

The bill's scope expanded from only state entities and health plans to include ERISA plans that choose to participate in the program.

REQUIREMENT

Added legislative findings and declaration section explaining the problem of excessive drug prices and their impact on New Yorkers.

Changed subsection references from (c) and (e) to (f) to match the new structure of the bill.

DEFINITION

Updated definition of 'prescription drug' to reference the penal law instead of the education law, and changed 'wholesale acquisition cost' definition to reference the tax law.

Clarified that 'State entity' does not include Medicaid.

ELIGIBILITY

Added new definitions for 'ERISA plan' and 'Participating ERISA plan' to allow private employer health plans to voluntarily join the program.

Added new subsection allowing ERISA plans to opt-in to participate in the referenced rate pilot program.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jan 30, 2026

Upper · Passed

PRINT NUMBER 1351A

upper

Jan 30, 2026

Upper · Passed

AMEND AND RECOMMIT TO INSURANCE

upper

Jan 7, 2026

Committee

REFERRED TO INSURANCE

upper

Jan 9, 2025

Committee

REFERRED TO INSURANCE

upper

1 primary · 3 co-sponsors