M E M O R A N D U M

TO: Members of the Assembly Health Committee

FROM: Hilary Chebra, Manager, Government Affairs, CCSNJ

RE:                A-536/A-2841 (Freiman/McKeon/Mosquera/McKeon/Freiman/Mosquera)

A-1747 (McKeon/Moen/McKnight) 

A-2840 (McKeon/McKnight/Moen)

The Chamber of Commerce Southern New Jersey (CCSNJ) would like to voice our concerns with A-2840/A-2841, A-536, and A-1747. 

The CCSNJ shares the concerns of fellow New Jerseyans over the rising cost of medications and healthcare. Now more than ever, having a robust and well-functioning health industry is critical to recovering from the effects of COVID-19. The CCSNJ supports the goal of our legislature to implement methods that alleviate the burden of rising healthcare costs.

However the CCSNJ is concerned about A-2840/A-2841, A-536, and A-1747 and fear that the way these bills are currently drafted will cause more harm than good. Each bill currently misconstrues core functions of the supply chain: those of wholesale distributors and pharmacy services administrative organizations (PSAOs).

If these bills are passed into law in their current form, they would require reporting and data collection steps that are simply inaccessible for wholesale distributors and PSAOs. Furthermore, as currently written the bills would create needless bureaucratic steps that would undoubtedly generate an undue burden to these entities. This would also complicate the current collection process in place for the state of New Jersey and the Division of Consumer Affairs.

Local and independent pharmacies depend on the functions of PSAO’s as well as the continued efficient flow of medical supplies from wholesale distributors. We fear that this bill would create burdens and bottlenecks that would drive these businesses from operating in our state, harming the healthcare community and patients.

We respectfully call upon members of this body to reevaluate and amend these bills to more accurately reflect the roles these two entities provide to the supply chain since neither entity has a role in the price of medications. We are certain that once necessary revisions are made, that A-2840, A-536, and A-1747 can serve the people of New Jersey well and lower drug costs.

Thank you for the opportunity to share our concerns with A-2840/A-2841, A-536, and A-1747.