Lance's Corner

Governor Hochul Launches New System to Report Drug Price Spikes

Mar 17, 2025

Per the notice below, Governor Houchul has launched a new system for reporting spikes in drug prices.

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Replaced Outdated Systems With Single Streamlined Platform To Improve Oversight and Ensures Better Service

DFS Connect Available

Governor Kathy Hochul today 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.”

New York State Department of Financial Services Superintendent Adrienne Harris said, “Over the last three years, we have cultivated a culture of innovation, invested in new technological infrastructure and updated key processes.  DFS Connect is a pivotal example of how we are innovating to enhance regulatory oversight while making it easier for New Yorkers and businesses to engage directly with the agency.”

New York State Health Commissioner Dr. James McDonald said, “Under Governor Hochul’s leadership we continue to protect the health and wellbeing of all New Yorkers and ensure everyone has equitable access to the medications and resources necessary for a quality and healthy life.  DFS Connect will give New Yorkers a voice and opportunity to help keep drug prices affordable and drug manufacturers accountable for overpriced prescription medication.”

Assemblymember Amy Paulin said, “Congratulations to Governor Hochul and her team on the release of DFS Connect.  The ever-rising cost of medications impacts all New Yorkers, especially seniors and those living on fixed income.  Every step that can be taken to help protect New Yorkers from these cost increases, like the new DFS Connect system, is needed.”

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.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc