Gov. Andrew Cuomo last night approved a measure that would prohibit insurance companies from requiring policy holders to use mail-order pharmacies when purchasing prescription drugs.

Along with the still-unacted-upon livery cab bill, the pharmacy measure was one of the last remaining controversial measures that Cuomo had yet to sign or veto.

The bill was also the subject of a concerted PR campaign for and against the measure.

In part leading the effort was Jennifer Cunningham, who has close ties to the Cuomo administration, making the approval somewhat eyebrow raising. However, both sides say they’re in good shape, considering that Cuomo is now calling for, and will apparently receive, a chapter amendment on the bill.

It’s also a victory for Bronx Democratic leader and Assemblyman Carl Heastie, who carried the bill in his chamber.

“The Pharmacy Benefits Managers know that unions, school districts and other employers have found that when they shift to a non-mandatory plan, allowing their employees and members choice in where to fill their prescriptions, their costs go down and customer satisfaction goes up,” said Craig Burridge, Executive Director of the Pharmacists Society of the State of New York.

“We know we can match their prices and beat their service. They know it too, and that is why they threw up a smokescreen of deception to try and defeat a simple bill to restore consumer choice.”

The U.S. Postal Service’s union and the FTC had also weighed in against the measure. Insurance companies turn to the mail-order pharmacies in order to contain costs.

But bricks and mortar pharmacies said the measure would help increase consumer choice and reduce state-sponsored health care costs.

Update: A sharp-eyed reader sends over Cuomo’s signing message, which says the governor has “concerns” with the bill. Cuomo says both chambers agreed to amendments to make the bill more amendable.

“While I support their objectives, I have concerns with these bills. To address these concerns, both houses of the Legislature have agreed to pass amending legislation making several changes, including providing that the retail pharmacy must agree in advance to accept the same reimbursement rate and applicable terms and conditions established for mail order pharmacies. With the understanding that these amendments will be passed, I approve these bills.”

Update II: Jonah Houts, a spokesman for Express Scripts, says in a statement that the chapter amendment legislation is a silver lining for the company.

“We are pleased that the Governor and the Legislature have agreed to sign Chapter amendments – upon their return in January – which will address the serious economic impacts the original bill would have on individuals and businesses.”

“As we have argued from the moment it was introduced, this legislation would cause prices to rise for consumers and employers in New York. With these amendments, the Governor and legislature clearly agreed with our position.”

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