Bill Text: NY S07150 | 2015-2016 | General Assembly | Introduced

New York Senate Bill 7150 (Prior Session Legislation)

Introduced

Bill Title: Enacts provisions governing the conduct of audits of pharmacies by pharmacy benefit managers; provides timeframes for reports, specifies documentation to be used; exempts certain investigations.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2016-06-15 - referred to health [S07150 Detail]

Download: New_York-2015-S07150-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________
                                          7150
                    IN SENATE
                                     March 31, 2016
                                       ___________
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Health
        AN ACT to amend the public health law, in relation to audits of  pharma-
          cies
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The public health law is amended by adding  a  new  section
     2  280-b to read as follows:
     3    §  280-b.  Pharmacy  audits  by  pharmacy benefit managers. 1.   Defi-
     4  nitions. As used in this section, the following  terms  shall  have  the
     5  following meanings:
     6    (a)  "Pharmacy  benefit  manager"  shall  have  the same meaning as in
     7  section two hundred eighty-a of this article.
     8    (b) "Pharmacy" shall mean a pharmacy that has contracted with a  phar-
     9  macy benefit manager for the provision of pharmacy services.
    10    2.  When conducting an audit of a pharmacy's records, a pharmacy bene-
    11  fit manager shall:
    12    (a) not conduct an on-site audit of a pharmacy at any time during  the
    13  first three calendar days of a month;
    14    (b)  notify  the pharmacy or its contracting agent no later than seven
    15  days before the date of initial on-site audit;
    16    (c) limit the audit period to twenty-four  months  after  the  date  a
    17  claim is submitted to or adjudicated by the pharmacy benefit manager;
    18    (d) use the written and verifiable records of a hospital, physician or
    19  other  authorized  practitioner,  which  are transmitted by any means of
    20  communication, to validate the pharmacy records in accordance with state
    21  and federal law;
    22    (e) provide the pharmacy or its contracting agent with a copy  of  the
    23  preliminary  audit  report  within  one  hundred  twenty  days after the
    24  conclusion of the audit;
    25    (f) provide the pharmacy or its contracting agent with the ability  to
    26  provide  documentation  to  address  a  discrepancy  or  audit  finding,
    27  provided that such documentation must be received by the pharmacy  bene-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14826-01-6