New York S 5314: Establishes patient safety and quality assurance measures regarding the distribution of patient-specific medication from an insurer-designated pharmacy

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S05314 Summary:

BILL NOS05314 

&nbsp

SAME ASSAME AS A01720

&nbsp

SPONSORBAILEY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§3217-b & 4325, Ins L; amd §4406-c, Pub Health L

&nbsp

Establishes patient safety and quality assurance measures regarding the distribution of patient-specific medication from an insurer-designated pharmacy; prohibits certain "brown bagging" and "white bagging" policies regarding pharmacy provided medications.

Go to top S05314 Actions:

BILL NOS05314 

&nbsp

02/20/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS05314 Committee&nbspVotes:

Go to topS05314 Floor&nbspVotes:

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

Go to topS05314 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5314

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

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

 AN ACT to amend the insurance law and the public health law, in relation
 to establishing patient safety and quality assurance measures regard-
 ing the distribution of patient-specific medication from an insurer-
 designated pharmacy

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

 1 Section 1. Section 3217-b of the insurance law is amended by adding a
 2 new subsection (p) to read as follows:
 3 (p) (1) No insurer subject to this article shall by contract, written
 4 policy or written procedure allow or require an insurer-designated phar-
 5 macy to dispense a medication directly to a patient with the intention
 6 that such patient will transport such medication to a physician's
 7 office, hospital or clinic for administration.
 8 (2) An insurer subject to this article may offer coverage for, but
 9 shall not require the use of a home infusion pharmacy to dispense ster-
 10 ile intravenous drugs ordered by physicians to patients in their homes
 11 or the use of an infusion site external to a patient's provider office
 12 or clinic.
 13 (3) An insurer subject to this article, in order to require the
 14 distribution of patient-specific medication from an insurer-designated
 15 pharmacy to a physician's office, hospital or clinic for administration,
 16 shall establish an agreement with the physician, hospital or clinic
 17 responsible for receiving and administering such medications to ensure
 18 proper receipt, transfer, handling, and storage of the medication prior
 19 to administration that includes, but is not limited to, the following
 20 provisions:
 21 (A) provide at least ninety days' notice to providers and insurers
 22 prior to the implementation of such a requirement;

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04208-01-5

 S. 5314 2

 1 (B) have a patient-specific expedited exception process for cases in
 2 which a provider certifies that it is unsafe for a patient to receive
 3 medication from an insurer-designated pharmacy;
 4 (C) provide same day delivery of medications;
 5 (D) make available on-call access to a pharmacist or nurse twenty-four
 6 hours per day, seven days per week;
 7 (E) utilize cold chain logistics or other means to ensure a drug
 8 remains at the appropriate temperature through all stages of supply and
 9 storage;
 10 (F) provide a medication's pedigree to certify to the physician's
 11 office, hospital or clinic that the drug was handled appropriately
 12 through the supply chain;
 13 (G) demonstrate expertise and reliability in risk evaluation and miti-
 14 gation strategy to comply with United States food and drug adminis-
 15 tration reporting requirements;
 16 (H) demonstrate the insurer-designated pharmacy is accredited by a
 17 national accreditation organization;
 18 (I) demonstrate ability to deliver medications to a physician's
 19 office, hospital or clinic in a clinically appropriate dosage and in a
 20 ready-to-administer dosage form; and
 21 (J) offer site neutral payment for such medications to the physician's
 22 office, hospital or clinic administering the medication, which payment
 23 shall include the costs for the providers to intake, store and dispose
 24 of such medication