Research

Administrative History

A New York State law took effect on April 1, 1978 allowing a consumer, with the consent of a physician, to substitute a less expensive generic drug for a brand name drug originally prescribed.

This drug substitution law (Laws of 1977, Chapter 776) came about after years of complaints by consumers about the high cost of brand name drugs and the desire to have the advantages of lower priced generic substitutions. The law was passed over the opposition of a highly organized pharmaceutical industry lobby. It is credited with saving millions of dollars for New Yorkers since 1978.

The Assembly Office of Legislative Oversight and Analysis gathered a tremendous amount of information on the drug industry, assisted Assembly committees with hearings, conducted surveys of drug pricing and drug company sales methods, compiled reports, and performed a wide variety of other tasks to assist the Assembly in preparing the legislation.