Governor Phil Murphy Enacts Strict Drug Transparency Rules Mandating Prior Notice for Price Hikes

TRENTON, NJ — Governor Phil Murphy signed into law a comprehensive pharmaceutical affordability package, empowering the New Jersey Drug Affordability Council to investigate excessive price spikes on life-saving brand-name and generic prescription medications.

Curbing Unjustified Drug Cost Spikes

The statute mandates that pharmaceutical manufacturers provide the state with 60 days advance notification and audited research-and-development accounting before implementing annual wholesale acquisition cost increases exceeding 15%. The legislation also subjects Pharmacy Benefit Managers (PBMs) to annual fiduciary audits by the Department of Banking and Insurance to eliminate predatory 'spread pricing' practices that inflate out-of-pocket costs for consumers.

Governor Murphy stated that no New Jersey family should have to choose between putting food on the table and affording vital prescription medications.

Patient Advocacy Support and Pharmaceutical Industry Stance

AARP New Jersey and healthcare consumer federations commended the statutory advance-notice rules for protecting seniors on fixed incomes.

Pharmaceutical trade associations argued that research disclosures could complicate commercial proprietary development.

Council Reporting Milestones

The New Jersey Drug Affordability Council will publish its inaugural public medication pricing transparency report in March 2027.