By: HUB’s EB Compliance Team

The 2026 New York law on “pharmacy shared services arrangements” Assembly Bill A9729, effective as of May 22, 2026. is fundamentally a pharmacy practice and licensure law, not a benefits mandate. The law is designed to govern pharmacy shared services. Although it does not directly regulate employer health plans, it substantively affects the pharmacy and PBM environment that plans operate within.

Key Aspects of the Law

The law imposes new requirements on pharmacies, including:

  • Registration of nonresident (out-of-state) pharmacies that participate in shared pharmacy services for New York pharmacies or patients, and designation of a New York resident agent for service of process
  • Expanded rules for nonresident pharmacies
  • Strict tracking and accountability for central fill and shared service models
  • Pharmacies must obtain a one-time consent (written or electronic) from the patient to fill current and future prescriptions using shared pharmacy services. Patients must have the ability to opt-out.

Central Fill and Shared Service Models

Shared Service and Central Filling are two phrases describing similar concepts expressing the idea that some pharmacies choose to “white label” prescriptions obtained from other pharmacies instead of doing the labor themselves. (In short, white labeling implies that a product or service, manufactured by a third party, is sold by a retailer under their own branding, logo, and identity.)

These “central fill” or “shared service” pharmacies charge the local pharmacy money in order to operate as their “back end” shop.

Rather than restricting these arrangements, the New York law brings them within an express statutory framework. Such pharmacies are often not located in the same state as the patient who needs the drug.

Similarly, when it comes to “shared” services, the law is referring to pharmacies that hold contractual agreements to rely on third parties to fulfill administrative tasks like verification, data management, resources, and in some cases even staff.

Mechanics behind New York’s Shared Pharmacy Services Law

Any organization with New York employees (regardless of situs) will be affected. And from among that group of employers, group health plans that rely on mail order pharmacies, central fill models and specialty pharmacy networks are expected to be most noticeably affected. 

PBMs are actively exploring their operational options but may seek to revise contract terms and, possibly in certain cases, to weaken guarantees in order to optimally position themselves for compliance with the state law.

For employers concerned about how their group health plans are affected, this appears to create new operational hurdles and cost risk issues – but not a plan design mandate or direct burden on plan sponsors. Nonetheless as ERISA plan fiduciaries, plan sponsors should monitor vendor compliance, particularly for employers with New York employees. (Further details shared below.)

Potential Impact of the Law

Although it’s far too early to gauge impact of a law that’s still not yet in effect, it’s possible that some pharmacies (especially out-of-state or centralized operations) may exit networks. These new rules could also seemingly impact mail order fulfillment and specialty drug access.

It’s also a virtual certainty that, to the extent the new NY state law generates compliance costs for the pharmaceutical industry, those new costs will be passed through PBMs and pharmacies thereby further intensifying cost pressure on Rx trend for employer plan sponsors.

From a compliance standpoint for ERISA plan sponsors this is an opportune moment to engage PBMs and Pharmacy Vendors to verify their NY registration compliance, inquire about possible network changes and clarify estimated cost impact. Also, it’s important for employers to clearly understand and coordinate how pharmacies are reaching out to employees to obtain their required consent. (Especially since many employers can expect to be flooded with questions from group health plan participants uncertain about the consent form they are required to sign.)

Conclusion

This law is part of a broader trend of states regulating the pharmacies and PBMs that serve health plans. For multistate employers, understanding how these laws impact health plans is essential to plan compliance.

If you have any questions, please contact your HUB advisor. View more compliance articles in our Compliance Directory.

NOTICE OF DISCLAIMER
Neither Hub International Limited nor any of its affiliated companies is a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only and is not intended to constitute legal or tax advice as to an organization’s or individual's specific circumstances. It is based on Hub International's understanding of the law as it exists on the date of this publication. Subsequent developments may result in this information becoming outdated or incorrect and Hub International does not have an obligation to update this information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization’s specific situation in light of your or your organization’s particular needs.