Senate Dems Advance Legislation to Lower Costs and Increase Transparency

Manufacturers to Disclose Deals that Delay Cheaper Generic Drugs

Senate Majority Leader Andrea Stewart-Cousins held a press conference with several other state senators to unveil a suite of legislation that’s supposed to cut costs and increase price transparency. “Our package today is designed to address these everyday challenges by targeting the key cost drivers that affect so many in our state,” Stewart-Cousins said.

Stewart-Cousins said the package represents a necessary step to protect New Yorkers from hidden costs and unfair prices. Her allies in the State Senate outlined their bills—on hidden fees, deceptive pricing, and expensive prescription drugs, energy rates, online groceries, and subscriptions.

Pharmaceutical Manufacturers to Disclose Deals that Delay Cheaper Generic Drugs

Sen. Nathalia Fernandez introduced S488/A2289, the Manufacturer Disclosure and Transparency Act. It gives pharmaceutical manufacturers who produce brand-name drugs 30 days to notify the attorney general about any “pay-for-delay” deal. They delay and sometimes can even block cheaper generic versions from the market.

The attorney general would track these deals and challenge them when they cause higher prices. Companies would have to report the drug’s name, cost, manufacturers, treated disease, and how long the delay will last. The attorney general would share that information with state agencies, health insurers, pharmacy benefit managers, and a searchable online portal.

Any manufacturer who fails to report would face fines starting at $5,000 per day for the first violation, and $10,000 per day for each additional day of noncompliance. Fernandez said the goal is preventing consumers from paying more when there are cheaper alternatives.

Mobile Apps to Make it Easier to Cancel Subscriptions

Sen. Andrew Gounardes pushed legislation requiring mobile apps to make it easier to cancel. He said companies use “dark patterns” to make signing up easy but canceling hard, trapping users in expensive subscriptions that they don’t want. S4391—which applies to apps on phones and tablets that offer a subscription service with automatic renewal—requires an easy-to-find way for the user to cancel from within the app itself. They’d have to offer an obvious link or button to end the renewal service.

Energy Service Companies to Display Side-by-Side Comparisons of Rates

Sen. Brad Hoylman-Sigal proposed S3876/A3875, forcing energy service companies (ESCOs) to display side-by-side comparisons of their rates with standard utility prices. He said ESCOs often make bold claims about saving New Yorkers money without clear proof.

The comparison, including delivery charges, would have to appear on the first page of an ESCO bill. It would need to include the price that the ESCO charged during the last billing period beside the price from the local utility provider. Once a year, customers would also receive a full-year breakdown showing savings, overpayments, and an itemized list of extra energy products that they were charged for.

If an ESCO were to break the proposed law, the attorney general could go after them for fines of up to $1,000 per violation, refunds, and legal fees. Customers could also sue directly for damages—either the value of the actual losses or a $500 minimum, whichever is greater.

Transparency in the Drug Supply Chain

Sen. Zellnor Myrie sponsored S438, potentially increasing transparency in the drug supply chain by requiring more reporting from pharmacy benefit managers and other middlemen. He said hidden costs drive up prescription prices without consumers knowing why.

Under the Prescription Drug Supply Chain Transparency Act, companies involved in drug pricing and distribution have to register with the Department of Financial Services, pay registration fees, and submit financial records. The measure would regulate middlemen—pharmacy services administrative organizations (PSAOs), rebate aggregators, and pharmacy switch companies.

They’d have to disclose financial details, business practices, and ownership structures to the Department of Financial Services (DFS), which would in turn have to publish that information in a searchable database. Companies who don’t comply with state inquiries can face fines and legal action, with the DFS superintendent able to investigate misconduct. Penalties collected under the law would go into a special state fund earmarked for regulating pharmacy benefit managers.

Online Grocery Pricing Transparency

Sen. James Skoufis introduced a bill focused on online grocery pricing. S4433/A1096A would require grocery stores, food retailers, and third-party platforms to clearly publicize online prices that differ from in-store prices.

Any markup differences would have to be displayed upfront. Platforms that apply online price hikes across the board instead of to a specific product must clearly state those differences, too. The law would cover supermarkets, grocery stores, and any retailer that sells a significant portion of fresh food items, as defined by the Secretary of State of New York.

The secretary would also be responsible for setting additional rules to enforce the law. Businesses face fines starting at $100 for the first offense and up to $250 for repeated violations.

Healthy Incentive Program for SNAP Recipients

Sen. Roxanne Persaud sponsored S1281/A2567, titled The New York Healthy Incentive Program (NYHIP). It would let recipients earn SNAP dollars when they buy locally grown fruits, vegetables, dairy, or other local healthy foods.

Earned dollars would automatically load onto their SNAP account, granting easier access to fresh, nutritious food at farmers markets, co-ops, and grocery stores. This program is supposed to incentivize fresh and healthy diets while investing in local farms.

Frequently Asked Questions

• What is the purpose of the legislation?
• What are the key cost drivers that the legislation aims to target?
• What are the penalties for non-compliance with the proposed laws?
• How will the legislation affect consumers?
• What are the benefits of the Healthy Incentive Program for SNAP recipients?

Conclusion

The Senate Democrats’ package of legislation aims to address the everyday challenges faced by New Yorkers by targeting key cost drivers, increasing transparency, and promoting healthy habits. The proposed laws will help consumers make informed decisions, reduce costs, and improve their well-being.