Requires prescription drug services covered under Medicaid program to be provided via fee-for-service delivery system.

New Jersey's bill A3872 requires Medicaid prescription drug services to shift from managed care to a fee-for-service system, meaning pharmacies will be paid directly for each drug dispensed rather than through managed care organizations. It mandates that reimbursement for covered drugs (including brand name, generic, specialty, and clotting factors) be calculated using the lowest of several pricing methods, such as the National Average Drug Acquisition Cost (NADAC) or state maximum allowable costs, plus a fixed $10.92 dispensing fee. This change directly affects Medicaid beneficiaries, pharmacies, and the state's Medicaid program by altering how drug costs are reimbursed. The bill also specifies that clotting factors must use a Point of Sale System for billing starting January 1, 2020. These changes aim to standardize reimbursement while potentially reducing costs, as seen in similar programs in West Virginia and New York.