New York S 9497: Requires insurers to cover the substitution of a brand name prescription drug when the federal food and drug administration has declared that there is a supply issue with a generic drug

Bill Text

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S09497 Summary:

BILL NOS09497 

&nbsp

SAME ASSAME AS A01428

&nbsp

SPONSORFERNANDEZ

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§3242 & 4329, Ins L

&nbsp

Requires insurers to cover the substitution of a brand name prescription drug when the federal food and drug administration has declared that there is a supply issue with a generic drug.

Go to top S09497 Actions:

BILL NOS09497 

&nbsp

03/18/2026REFERRED TO INSURANCE

04/20/2026REPORTED AND COMMITTED TO FINANCE

06/01/2026COMMITTEE DISCHARGED AND COMMITTED TO RULES

06/01/2026ORDERED TO THIRD READING CAL.1489

06/01/2026SUBSTITUTED BY A1428

&nbspA01428 AMEND= Forrest

&nbsp01/09/2025referred to insurance

&nbsp01/07/2026referred to insurance

&nbsp03/18/2026reported 

&nbsp03/19/2026advanced to third reading cal.311

&nbsp05/06/2026passed assembly

&nbsp05/06/2026delivered to senate

&nbsp05/06/2026REFERRED TO INSURANCE

&nbsp06/01/2026SUBSTITUTED FOR S9497

&nbsp06/01/20263RD READING CAL.1489

&nbsp06/01/2026PASSED SENATE

&nbsp06/01/2026RETURNED TO ASSEMBLY

Go to topS09497 Committee&nbspVotes:

Go to topS09497 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09497 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9497

 IN SENATE

 March 18, 2026
 ___________

 Introduced by Sen. FERNANDEZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on Insurance

 AN ACT to amend the insurance law, in relation to substituting brand
 name prescription drugs in the case of a drug shortage

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 3242 of the insurance law is amended by adding a
 2 new subsection (d) to read as follows:
 3 (d) (1) As used in this subsection:
 4 (A) "Eligible prescription drug" means a prescription drug approved
 5 under 21 U.S.C. 355(c) that is not under patent.
 6 (B) "Generic drug" means a drug that is approved pursuant to an appli-
 7 cation referencing an eligible prescription drug that is submitted under
 8 subsection (j) of Section 505 of the Federal Food, Drug, and Cosmetic
 9 Act, 21 U.S.C. 355.
 10 (C) "Supply issue" means a drug shortage or meaningful disruption as
 11 defined in 21 U.S.C. 356(c).
 12 (2) In the event an AB-rated generic equivalent or interchangeable
 13 biological product for an eligible prescription drug is covered in an
 14 insurer's formulary and such generic drug equivalent is unavailable due
 15 to a supply issue which has been recognized by the federal food and drug
 16 administration pursuant to 21 U.S.C. 356e and the dosage cannot be
 17 adjusted, an insurer that delivers or issues for delivery in this state
 18 a policy that provides coverage for prescription drugs shall provide
 19 coverage for a brand name eligible prescription drug to an insured who
 20 is already receiving such prescription drug as a generic equivalent or
 21 has been diagnosed with or presented with a condition on or prior to the
 22 start of the plan year that is treated by such eligible prescription
 23 drug or is an eligible prescription drug that is or would be part of the
 24 insured's treatment regimen for such condition. Such brand name eligible
 25 prescription drug shall be covered at the same level of coverage as the
 26 generic drug in the insurer's formulary until such time as the supply
 27 issue is resolved and the drug has been removed from the federal food
 28 and drug administration's shortage list.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03949-01-5

 S. 9497 2

 1 § 2. Section 4329 of the insurance law is amended by adding a new
 2 subsection (d) to read as follows:
 3 (d) (1) As used in this subsection:
 4 (A) "Eligible prescription drug" means a prescription drug approved
 5 under 21 U.S.C. 355(c) that is not under patent.
 6 (B) "Generic drug" means a drug that is approved pursuant to an appli-
 7 cation referencing an eligible prescription drug that is submitted under
 8 subsection (j) of Section 505 of the Federal Food, Drug, and Cosmetic
 9 Act, 21 U.S.C. 355.
 10 (C) "Supply issue" means a drug shortage or meaningful disruption as
 11 defined in 21 U.S.C. 356(c).
 12 (2) In the