Governor Andrew M. Cuomo today announced a groundbreaking new proposal to protect New Yorkers from the soaring prices of prescription drugs in New York State.
The Governor's plan consists of a three-pronged approach that will:
Insulate taxpayers by preventing prescription drug price gouging in the Medicaid program;
Impose a surcharge on drug manufacturers that charge exorbitant prices and reallocate that money to insurers and businesses to lower premiums for the following year; and
Protect ratepayers from abusive business practices by intermediaries that drive up drug prices.
"The skyrocketing costs of prescription drugs is an issue that the nation has been grappling with for years and as we have so many times before, New York is prepared to show the path forward,” Governor Cuomo said. “Perpetually rising drug costs hurt the wallets of taxpayers and the bottom lines of businesses, but for those who desperately need lifesaving medicine and cannot afford it, the consequences can be dire. The idea that in 2017 someone who has fallen ill might not have the opportunity to recover simply so someone can line their pockets with a few more dollars is unconscionable and must be stopped immediately.”