To: NACDS Chain Members From: Steven C. Anderson, FASAE, CAE, IOM President & Chief Executive Officer Date: June 26, 2026

I am writing to share a few thoughts about a significant step forward for patients and pharmacies in New York — one with the potential to become a major win  —  and about other recent results that reflect progress on NACDS’ pro-patient and pro-pharmacy agenda. We want to thank you for the advocacy that is helping to advance priority issues.

Earlier this month, the New York Legislature passed the Patient Access to Pharmacy Act (PAPA, S5939B), advancing a measure that promises greater access to pharmacy care for patients across the state. The bill cleared the Assembly on a unanimous 133–0 vote, reflecting broad agreement that pharmacies should not be paid less than it costs them to dispense the medications our communities rely upon every day. Having passed both chambers, PAPA is expected to be transmitted to Governor Kathy Hochul in November 2026, at which point she will decide whether to sign it into law.

About the Legislation

PAPA sets a reimbursement floor across pharmacy network contracts in state-regulated commercial health plans, tied to the cost-based methodology New York’s Medicaid program already uses, so pharmacies would no longer be paid below their costs in this program. It also creates a payment appeals process for higher-cost specialty medications that require special handling, increased delivery costs, and other services — helping ensure pharmacies receive an adequate dispensing fee.

Efforts to Drive Momentum

To help drive passage, NACDS was proud to work in close partnership with the highly effective Community Pharmacy Association of New York and the Pharmacists Society of the State of New York (PSSNY), joining a broad coalition of pharmacy advocates behind one message: underpayment by PBMs threatens patients’ access to their neighborhood pharmacies. That united front — led by pharmacists and advocates across the state — gave lawmakers a clear, consistent signal that the entire pharmacy community stood behind the bill.

NACDS also drove a targeted grassroots campaign, mobilizing pharmacy teams across the state to contact their Assembly Members directly.  As the session drew to a close, NACDS coordinated  a same-day surge of advocate outreach at a critical moment — helping carry the bill to a unanimous 133-0 final vote in the Assembly.

If signed, the momentum would reach well beyond New York. PAPA offers a model as NACDS and allied organizations work to secure similar payment protections in commercial markets across the country.

Sustaining the Message

The work is far from finished, and passage in the Legislature does not guarantee passage into law. Getting PAPA across the finish line will depend on a sustained, clear message — carried consistently in the weeks and months ahead — about the real value this bill delivers for patients and the pharmacies they depend on. It will be essential for NACDS members serving New Yorkers to keep it front and center: PAPA protects access to local pharmacy care, confronts the practice of paying pharmacies below their costs, and keeps pharmacies open to serve their communities.

A signed bill is not inevitable — it will take a consistent, unified voice from across the pharmacy community to turn this potential into law, and that momentum must be sustained through the Governor’s decision. NACDS will continue providing the tools and opportunities for advocates to make that case, and we encourage every member to use them. As PAPA advances toward the Governor’s desk, NACDS will continue urging that it be signed swiftly into law — and we are grateful to the bill’s sponsors, Assemblyman John McDonald and Senator James Skoufis, and to every member who answered the call.

Part of a Broader State-Level Movement

Across the country, states are stepping up to protect patient access to pharmacy care, rein in PBM practices, and expand the role pharmacists play in their communities. Each of these victories builds national momentum — and offer a model that NACDS is working to advance market by market. Two recent wins underscore this point:

Tennessee. Governor Bill Lee signed the Tennessee Freedom, Access, and Integrity in Registered Pharmacy Act (FAIR Rx Act, SB 2040/HB 1959) into law in late May, prohibiting a single company from simultaneously operating a health plan, a PBM, and a pharmacy. Specifically, a company may not hold more than a five percent ownership interest in both a PBM and a health insurer while also operating a pharmacy in the state. By separating these overlapping financial interests, the law promotes fair competition, preserves patient choice, and helps keep costs manageable for Tennessee families. Led by Sen. Bobby Harshbarger and championed by the Tennessee Pharmacists Association, the bill earned overwhelming bipartisan support, passing the Senate 24–9 and the House 86–7. It takes effect July 1, 2028.

Vermont. Governor Phil Scott signed H.588 into law in early June, giving pharmacists and trained pharmacy technicians clear authority to test for and treat a defined set of common conditions — such as strep throat and the flu. The new authority puts everyday care within reach at locations Vermonters already know and trust, a meaningful step for rural communities where more than one in four residents now lives in a pharmacy desert. NACDS was proud to partner with the Vermont Department of Health, the Office of Professional Regulation, and the Vermont Association of Chain Drug Stores to advance the bill.

Just in this 2026 legislative session, 202 policy changes have been signed into law in 47 states, strengthening patient access to pharmacies nationwide. Each of these wins strengthens the case for the next. NACDS is proud to lead this fight on behalf of our members — and with your voice at the forefront, New York can be the next state to turn momentum into law. We will keep you updated as PAPA advances toward the Governor’s desk, and we look forward to doing everything it takes to secure this crucial bill-signing. We will work hard to accomplish that using our proven formula: by doing it together through NACDS.

Thank you for your support and leadership.