Proposal would limit shared control of pharmacies and insurers

The proposal would bar a person or business from owning, running, controlling, or directing both a pharmacy and an insurance company or pharmacy benefit manager. The rule covers direct and indirect control of all or part of these businesses in the state. The act would take effect immediately.

A person or business violating the ownership rule would have to divest from the covered businesses. This applies to anyone violating the proposed ownership rule. Divestment would be due no later than three years after the section takes effect.

The attorney general could sue violators and seek civil penalties, costs, and reasonable attorney fees. The attorney general could bring a civil action against any person or business violating the section. The proposed penalty is $10,000 for each day of violation. The proposed daily penalty would apply for each day the violation continues.

A covered business found in violation by the attorney general would be ineligible for payments under programs authorized by article five of the Social Services Law. This applies to an insurance company, pharmacy, or pharmacy benefit manager found in violation by the attorney general. The payment restriction would last until the attorney general deems the violation resolved. The payment restriction would end when the attorney general deems the violation resolved.