The state of New York will soon put into effect a law concerning Pharmacy Shared Service Arrangements that passed last November. As a reminder, this law created a framework for multi-pharmacy coordination of prescription fulfillment in New York State.

This includes:

- A requirement that all pharmacies responsible for the fulfillment of a prescription (as well as their contact information) be present on the bottle;

- A requirement that pharmacies tell customers whether their prescriptions are being prepared or processed offsite. The customer has the right to opt out of any such arrangements;

- Pharmacies operating outside of New York which are filling orders for customers in New York, or which have a pharmacy shared service arrangement with a New York pharmacy must obtain a non-resident pharmacy license.

Although this law does not deal with employers or group health insurance plans directly, the potential implications are significant. Group health plans utilizing out of state pharmacies will have increased compliance burdens. Pharmacies that engage in mail order prescription fulfillment may have a more difficult time getting to plan participants located in New York. These pharmacies may have a difficult time obtaining a non-resident pharmacy license and, as a result, cease operations in the state.

Even those pharmacies able to obtain a license will face the increased hurdle of informing plan participants of the out-of-state arrangement and giving the participant the ability to opt out of it. Plan administrators will likely have to partner with these out of state pharmacies to ensure all disclosures are provided.

This policy change is set to take effect May 22. Employers should discern if any medications in their health insurance policies would fall under the purview of this new law and coordinate with the health insurance carriers to ensure proper procedures are followed.