A proposal advancing through the final days of New York’s legislative session could substantially raise pharmacy-related costs across the state. The measure is moving closer to approval as lawmakers in Albany work through end-of-session priorities.
Under the legislation, pharmacy benefit managers (PBMs)—the firms that administer prescription drug claims for most health insurance plans—would be required to reimburse pharmacies at prescribed minimum rates. The proposal includes a mandatory dispensing fee of $10.18 for every prescription filled.
The proposed dispensing fee is significantly higher than current reimbursement levels, which average approximately $2 per prescription. According to estimates from the Pharmaceutical Care Management Association, the change could increase annual prescription drug expenses by roughly $570 million for health plans, employers, and consumers.
The legislation is sponsored by Assemblyman John McDonald of Albany County, a former pharmacy owner, and Senator James Skoufis of Orange County. Known as the Patient Access to Pharmacy Act, the bill passed the Senate last week with overwhelming support in a 58-2 vote.
In the Assembly, the proposal recently cleared both the Ways and Means Committee and the Rules Committee, positioning it for consideration by the full chamber before the legislature adjourns for the summer. Lawmakers are expected to conclude their session on Friday.
Although the Senate also approved similar legislation at the close of last year’s session, the Assembly did not take action on it at that time.
The proposal closely resembles regulations introduced by the Department of Financial Services in late 2023. However, those regulations were ultimately withdrawn following strong objections from insurers, business groups, and labor organizations.
To address some of those concerns, lawmakers revised the bill to exclude health plans established through collective bargaining agreements. In addition, the legislation would not apply to Medicare or to self-funded employer health plans, which fall under federal jurisdiction rather than state oversight.
As a result, the measure would primarily affect insurance products purchased by small and mid-sized businesses, a segment already facing some of the nation’s highest health insurance premiums.
Opponents have also raised concerns that the requirement could extend to state-sponsored programs such as the Essential Plan and Child Health Plus. Senator Skoufis has indicated that including those programs was not the intended outcome of the legislation.
The proposal would not impact New York’s Medicaid program for low-income individuals and people with disabilities because Medicaid already provides a dispensing fee of $10.18 per prescription—the same amount used as the benchmark in the current bill.
New York’s Pharmacy Landscape
Supporters argue that the legislation is needed to ensure pharmacies receive adequate reimbursement from a small number of large PBMs that dominate the prescription drug marketplace.
At the same time, New York maintains a strong pharmacy presence compared with other states. Data from the National Community Pharmacists Association shows that New York ranks second only to West Virginia in pharmacies per capita. Nearly two-thirds of pharmacies in the state are independently owned, giving New York the second-largest share of independent pharmacies nationwide, behind only North Dakota. Furthermore, while the number of independent pharmacies has declined across much of the country, New York has continued to see growth in this segment.
Top Local Pharmacy Stores Serving the Bronx
As policymakers debate measures intended to support pharmacy sustainability, several locally operated pharmacies continue to play an important role in delivering healthcare services to Bronx residents. These pharmacies provide prescription services, medication counseling, specialty care, and personalized support that many patients rely on for their everyday healthcare needs.
1.MediServ Pharmacy
MediServ Pharmacy is a leading independent pharmacy serving the Bronx community with a comprehensive range of healthcare and medication management services. Known for its personalized customer care, the pharmacy specializes in prescription medications, custom compounding, medication adherence programs, immunizations, medical equipment, and prescription delivery throughout the Bronx. Patients benefit from one-on-one pharmacist consultations and tailored healthcare solutions designed to improve treatment outcomes. As a locally trusted healthcare provider, the pharmacy continues to play an important role in enhancing access to quality healthcare for residents across the Bronx.
2.RIVERDALE PHARMACY
Serving residents in the Riverdale neighborhood, this independently operated pharmacy is recognized for its strong community presence and comprehensive prescription services. Its focus on personalized customer care has helped make it a valued healthcare resource for local residents.
3.Southern Pharmacy
Southern Pharmacy is another well-regarded Bronx pharmacy known for providing prescription fulfillment, medication support, and convenient pharmacy services for area residents. Its longstanding presence in the community reflects the continued importance of neighborhood pharmacies in New York’s healthcare system.
The ongoing debate surrounding pharmacy reimbursement highlights the broader role community pharmacies play in maintaining healthcare access. For many Bronx residents, independent pharmacies remain a critical link between patients and the medications, services, and professional guidance they need to manage their health effectively.
