The supply chain for prescription drugs is a complicated process.

One part of the equation that is not often talked about are the Pharmacy Benefit Managers. These PBMs are the one link in the chain that is still not under state oversight.

"It was really to define who pharmacy benefit managers are, what they do, where are they located, their affiliations," said State Senator Neil Breslin, who sponsored a bill that would have regulated PBMs.

But that legislation was vetoed this week by Governor Andrew Cuomo, after passing both chambers earlier this year. Breslin says it would have created transparency, while protecting independent pharmacies. 

"More importantly, it protects the patient, the consumer of the product," Breslin said.

"Insurers, patients, business owners would have a much clearer view of exactly what they're paying for when it comes to the prescription drug benefit," said Assemblyman John McDonald, who is also the owner of Marra's Pharmacy in Cohoes.

He says PBMs serve a purpose because someone needs to manage the benefits. But McDonald says allowing the Department of Financial Services to take a closer look at this process would give all New Yorkers a little more confidence.

"All I'm looking for as a legislator, and I guess you would say as a pharmacy owner, is for everybody involved in that chain to be treated the same," McDonald said.

A spokesman for the Pharmaceutical Care Management Association told the Staten Island Advance last week the bill weakened PBMs' ability to lower drug costs. In his veto message, Cuomo said this legislation would increase administrative costs, facilitate anti-competitive conduct, and generate scrutiny from the federal government.

"While I appreciate the intent of this bill, as drafted this bill would be pre-empted by the Federal Employee Retirement Income Security Act, as well as by the Medicare Prescription Drug, Improvement, and Modernization Act as applied to the Medicare Part D program,” Cuomo said.

"I think we can easily fix that and clarify it," Breslin said. "I'm anxious to work with the governor's staff to make sure we can come up quickly with legislation that is acceptable and move forward."

The state legislative session convenes January 8.