New JerseyA1825220th Legislature (2024-2025)HouseWALLET

Establishes certain guidelines for SHBP, SEHBP, and Medicaid concerning step therapy protocols.

Sponsored By: Jon M. Bramnick (Republican), Angela V. McKnight (Democratic), Anthony S. Verrelli (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Public employees gain prescription drug protections

New Jersey’s State Health Benefits Program and School Employees’ Health Benefits Program gain protections for employees and covered dependents. The rules apply to contracts and policies delivered, issued, executed, or renewed on or after January 1, 2026. Step therapy, which requires trying certain drugs first, must follow evidence-based guidelines developed through a transparent process. Guideline panels must disclose and avoid conflicts of interest, consider patient preferences and unusual patient groups, and review guidelines at least annually—or quarterly when new evidence or uses arise. Peer-reviewed research is allowed when qualifying guidelines are unavailable, and vendors must make review criteria available. Vendors and review organizations must offer a clear exception process when the prescriber finds a required drug unsafe, ineffective, or less effective. Exceptions also apply when all drugs on the plan’s covered list for the condition have failed or caused, or are reasonably expected to cause, harm. Providers must supply supporting records if asked. Requests and appeals must be decided within 24 hours for urgent cases or 72 hours otherwise, after all needed information arrives. Members can appeal, and approved coverage for a drug covered by the plan lasts at least 180 days, or the full treatment period if shorter.

Stronger Medicaid protections for prescribed drugs

New Jersey Medicaid gains protections against step therapy, which requires trying certain drugs before covering another. The rules apply to contracts and policies delivered, issued, executed, or renewed on or after January 1, 2026. Drug sequences must follow evidence-based guidelines developed through a transparent process by panels that disclose and avoid conflicts of interest. Guidelines must consider patient preferences and unusual patient groups, with reviews at least annually—or quarterly when new evidence or uses arise. Peer-reviewed research is allowed when qualifying guidelines are unavailable, and managed care plans must make review criteria available. Plans must offer a clear exception process and grant exceptions when the prescriber finds a required drug unsafe, ineffective, or less effective. Exceptions also apply when all drugs on the plan’s covered list for the condition have failed or caused, or are reasonably expected to cause, harm. Providers must supply supporting records if asked. Requests and appeals must be decided within 24 hours for urgent cases or 72 hours otherwise, after all needed information arrives. Members can appeal, and approved coverage for a drug on the plan’s covered list lasts at least 180 days, or the full treatment period if shorter.

Sponsors & Cosponsors

Sponsors

  • Jon M. Bramnick

    Republican • Senate

  • Angela V. McKnight

    Democratic • Senate

  • Anthony S. Verrelli

    Democratic • House

Cosponsors

  • John V. Azzariti Jr. M.D.

    Republican • House

  • Rosaura Bagolie

    Democratic • House

  • Brian Bergen

    Republican • House

  • Linda S. Carter

    Democratic • House

  • Robert D. Clifton

    Republican • House

  • Joe Danielsen

    Democratic • House

  • Wayne P. DeAngelo

    Democratic • House

  • Margie Donlon M.D.

    Democratic • House

  • Aura K. Dunn

    Republican • House

  • Linda R. Greenstein

    Democratic • Senate

  • Donald A. Guardian

    Republican • House

  • Shama A. Haider

    Democratic • House

  • Hall, Garnet R.

    Affiliation unavailable

  • Robert J. Karabinchak

    Democratic • House

  • Yvonne Lopez

    Democratic • House

  • Matsikoudis, Michele

    Affiliation unavailable

  • Carol A. Murphy

    Democratic • House

  • Mu�oz, Nancy F.

    Affiliation unavailable

  • Ellen J. Park

    Democratic • House

  • Luanne M. Peterpaul Esq.

    Democratic • House

  • Annette Quijano

    Democratic • House

  • Verlina Reynolds-Jackson

    Democratic • House

  • Gabriel Rodriguez

    Democratic • House

  • William B. Sampson IV

    Democratic • House

  • Alex Sauickie

    Republican • House

  • Shanique Speight

    Democratic • House

  • Sterley S. Stanley

    Democratic • House

  • Lisa Swain

    Democratic • House

  • Swift, Claire S.

    Affiliation unavailable

  • Cleopatra G. Tucker

    Democratic • House

  • Chris Tully

    Democratic • House

  • Benjie E. Wimberly

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 114 • No: 2

House vote • 3/24/2025

3RDG FINAL PASSAGE

Yes: 75 • No: 2

Senate vote • 3/24/2025

3RDG FINAL PASSAGE

Yes: 39 • No: 0

Actions Timeline

  1. Approved by Governor — P.L.2025, c.50.

    5/8/2025Governor
  2. Passed Senate, PBH — (39-0)

    3/24/2025Senate
  3. Substituted for S3533 (SCS)

    3/24/2025Senate
  4. Received in Senate, SWR, 2nd Reading in Senate

    3/24/2025Senate
  5. Passed Assembly — (75-2-0)

    3/24/2025House
  6. REP/ACS, 2nd Reading in Assembly

    3/20/2025House
  7. REP/ACS, Referred to Assembly Appropriations Committee

    1/27/2025House
  8. REP/ACA, Referred to Assembly Financial Institutions and Insurance Committee

    3/14/2024House
  9. Introduced, 1st Reading in Assembly, Referred to Assembly Health Committee

    1/9/2024House

Bill Text

  • Version PL2025

    7/2/2025

  • Version AL2025

    6/6/2025

  • Assembly Appropriations Substitute (3/20/25 ACS ACS)

    4/7/2025

  • 3/27/25; ACS ACS

    3/27/2025

  • 3/4/25; ACS

    3/26/2025

  • Assembly Appropriations (3/20/25 ACS ACS)

    3/25/2025

  • Assembly Financial Institutions and Insurance (1/27/25 ACS)

    3/21/2025

  • Assembly Financial Institutions and Insurance Substitute (1/27/25 ACS)

    1/28/2025

  • Assembly Health (3/14/24)

    5/3/2024

  • Assembly Health Substitute (3/14/24)

    3/15/2024

  • As Introduced

    2/12/2024

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