With the introduction of DFS Connect, New York takes a major step toward consumer transparency, allowing residents to easily report prescription drug price increases and PBM complaints

New York – In a significant step aimed at protecting consumers from escalating prescription drug costs, New York Governor Kathy Hochul has introduced a new initiative called DFS Connect. This digital program, developed by the New York State Department of Financial Services (DFS), is designed to simplify the process for reporting sudden increases in drug prices and issues related to Pharmacy Benefit Managers (PBMs).

Governor Hochul emphasized that the primary goal of DFS Connect is to provide New Yorkers with a transparent and accessible method to address concerns about the rising costs of prescription medications.

This initiative allows consumers to directly report instances where drug prices have surged by more than 50% within a year. The platform also facilitates complaints against PBMs, who are often criticized for practices that can contribute to higher drug prices.

Adrienne Harris, Superintendent of the New York State Department of Financial Services, highlighted the efforts made by DFS over the past three years to foster innovation and improve technological infrastructure within the department.

“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,” Harris stated.

Since the start of 2022, DFS has managed over 300 complaints concerning PBMs and has successfully recovered more than $1.3 million for pharmacies and consumers affected by unfair practices. The introduction of DFS Connect aims to build on these efforts by providing a streamlined platform for filing and tracking complaints.

DFS Connect offers a user-friendly interface where users can submit complaints and monitor their status in real-time, facilitating direct communication with DFS staff regarding their issues. This reduces bureaucratic delays and enhances the efficiency of the complaint resolution process. Additionally, the platform will be beneficial for pharmacies to report unfair practices by PBMs and drug manufacturers.

Over the next few years, DFS plans to expand the functionalities of DFS Connect to include a wide range of regulatory processes and consumer support services. This will include everything from insurance-related filings and banking examinations to virtual currency oversight. By the first half of 2027, the platform is expected to handle all regulatory processes, transforming the way DFS interacts with the entities it regulates and the consumers it protects.

The phased integration of various services into DFS Connect is scheduled as follows: by mid-2025, the platform will manage insurance acquisition controls and reinsurance agreements; by the end of 2025, it will take over billing and assessments; and by 2026, it will support banking and virtual currency examinations.

The rollout of DFS Connect is part of a broader operational overhaul at DFS, which has included significant investments in human resources. Over the last three years, more than 1,000 individuals have been hired or promoted, including the first group of financial services examiner trainees since 2018. This strategic enhancement of the workforce is intended to ensure that DFS remains capable of effectively supervising the financial and insurance sectors in New York while continuing to advance consumer protections.

New Yorkers can access DFS Connect through an existing or new NY.gov account. For those who prefer traditional methods, paper complaint forms are available and can be mailed to the Department of Financial Services. The DFS also maintains a hotline for consumer inquiries, available weekdays from 8:30 AM to 4:30 PM. For more details or to sign up for DFS Connect, residents are encouraged to visit the DFS website.