Governor Hochul Announces New Measures to Simplify Reporting of Drug Price Spikes

New DFS Connect Platform Makes It Easier for New Yorkers To File Complaints About Drug Price Spikes and Allows Local Small Pharmacies To Seek Assistance in Resolving Complaints Against Pharmacy Benefit Managers

Replaced Outdated Systems With Single Streamlined Platform To Improve Oversight and Ensures Better Service

Governor Kathy Hochul announced the launch of DFS Connect; a new digital program launched by the Department of Financial Services (DFS) that will centralize the Department’s interactions with both regulated entities and consumers and ensure better service to businesses and consumers. Building on the State’s actions to protect New Yorkers from rising drug costs, the initial functions launched today on DFS Connect provide a streamlined and transparent way to file complaints for prescription drug prices that increase more than 50 percent over the course of a year and Pharmacy Benefit Managers (PBMs). Additionally, individuals can file complaints via mail or by calling the DFS Hotline.

“New Yorkers deserve a transparent and accessible option for reporting drug price spikes and holding PBMs and drug manufacturers accountable for their rising costs of prescription medication,” Governor Hochul said. “DFS Connect allows for individuals to report these spikes to the State and provide a more efficient service to both consumers and businesses.”

In 2021, Governor Hochul signed landmark legislation to bring transparency and a comprehensive regulatory structure to otherwise unregulated PBMs. DFS adopted new market conduct regulations to govern PBMs operating in New York State; helping to protect New Yorkers’ access to prescription drugs, prohibiting business practices that increase the cost of certain drugs, and ensuring that small, independent pharmacies compete on a fair playing field with large pharmacies affiliated with Pharmacy Benefit Managers. Since January 2022, DFS has received over 300 complaints regarding PBMs and has recovered a total of more than $1.3 million for pharmacies and consumers.

With today’s launch of DFS Connect, New Yorkers can now submit complaints about prescription drug spikes, PBMs and drug manufacturers. Once a complaint is submitted through DFS Connect, an individual can track its status in real-time and communicate directly with DFS staff about their issue. DFS Connect eliminates bureaucratic red tape and creates a user-friendly platform that enhances oversight and ensures better service to regulate businesses and consumers alike. Pharmacies will also be able to report problematic business practices of Pharmacy Benefit Managers (PBMs) and drug manufacturers.

Over the next three years, all of DFS’s regulatory processes and consumer support services will be rolled out on the platform:

• Q2-Q3 2025: Insurance Acquisition of Control, Reinsurance Agreements, Reinsurer Applications, Disclaimer of Control, Free Trade Zone Applications, Management Services Agreements, Schedule C-1 Filings
• Q4 2025: Billing and Assessments, Foreclosure Management System Replacement
• Q1-Q2 2026: Banking & Virtual Currency Examinations
• Q3-Q4 2026: Licensing and Insurance Examinations
• Q1-Q2 2027: Full transition of all regulatory processes to DFS Connect, including all consumer complaints

This tool is also modernizing how DFS oversees financial institutions, ensuring that critical regulatory functions, such as licensing, renewals, examinations and legal filings, are handled seamlessly. Additional functionalities, including insurance-related licensing and examination modules, will be introduced over the next two years, with the full transition to DFS Connect expected in 2026.

As part of its larger operational transformation, DFS has also invested heavily in strengthening its workforce. Over the past three years, DFS has hired and promoted more than 1,000 individuals, including the first class of financial services examiner trainees since 2018. This investment ensures the Department can effectively oversee New York’s financial and insurance industries while continuing to enhance consumer protections.

New Yorkers can submit PBM or drug price spike complaints online using DFS Connect, which can be accessed with a new or existing NY.gov account. Paper complaints are available on the Consumer Complaint page, and can be mailed to the Department of Financial Services, Attn: Office of Pharmacy Benefits, 1 Commerce Plaza, Albany, NY 12257. Additionally, the DFS Hotline is staffed Monday through Friday, from 8:30 AM to 4:30 PM. Call DFS at (800) 342-3736.

For more information or to sign up for DFS Connect, visit the DFS website or the DFS Connect platform.