Governor Kathy Hochul has launched DFS Connect, a new digital platform from the New York State Department of Financial Services (DFS) designed to streamline interactions between the agency, consumers and regulated entities.
The initiative aims to improve service efficiency and regulatory oversight while providing greater transparency in addressing prescription drug price spikes and Pharmacy Benefit Managers (PBMs), according to a press release.
“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.”
The platform’s initial functions include a streamlined complaint system for individuals to report prescription drug prices that increase by more than 50 percent within a year. Complaints about PBMs can also be submitted through DFS Connect, which allows users to track their case status and communicate directly with DFS staff.
“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," said New York State Department of Financial Services Superintendent Adrienne Harris.
New York State Health Commissioner Dr. James McDonald commended the public health benefits of the initiative, noting that the platform will ensure fair drug pricing and hold manufacturers accountable.
Since January 2022, DFS has received over 300 complaints regarding PBMs, leading to the recovery of more than $1.3 million for pharmacies and consumers. The platform builds on Hochul’s 2021 legislation establishing stricter regulations on PBMs, protecting access to prescription drugs, and preventing cost-increasing business practices.
DFS Connect will be expanded over the next three years to incorporate additional regulatory and consumer services. Key milestones include the integration of insurance acquisitions, reinsurance agreements, and financial examinations by 2026, with full implementation expected by 2027.
As part of DFS’s broader modernization efforts, the agency has also bolstered its workforce, hiring over 1,000 employees, including its first class of financial services examiner trainees since 2018.
New Yorkers can submit complaints regarding PBMs or drug price spikes via DFS Connect using an NY.gov account. Paper complaints can be mailed to the Department of Financial Services, Attn: Office of Pharmacy Benefits, 1 Commerce Plaza, Albany, NY 12257. Consumers can also call the DFS Hotline at (800) 342-3736, available Monday through Friday from 8:30 a.m. to 4:30 p.m.
