Gov. Andrew Cuomo on Wednesday announced a plan that would cap the cost of prescription drugs reimbursed under the Medicaid program in an effort to curtail price gouging.

“The skyrocketing costs of prescription drugs is an issue that the nation has been grappling with for years and as we have so many times before, New York is prepared to show the path forward,” Cuomo said in a statement.

“Perpetually rising drug costs hurt the wallets of taxpayers and the bottom lines of businesses, but for those who desperately need lifesaving medicine and cannot afford it, the consequences can be dire. The idea that in 2017 someone who has fallen ill might not have the opportunity to recover simply so someone can line their pockets with a few more dollars is unconscionable and must be stopped immediately.”

Cuomo’s proposal would create a “price ceiling” as set by a state review board for drugs reimbursed by the Medicaid program. The measure would require a 100 percent rebate for any amount that exceeds a benchmark price as backed by the board.

Another component would create a surcharge by any amount in which higher cost drugs exceed the benchmakr recommended by the board, with the proceeds sent to a fund overseen by the Department of Financial Services and allocated to insurers to lower the cost of premiums.

And Cuomo wants tackle the business practices of pharmacy benefit managers, intermediaries who act as brokers to negotiate the price of drugs for insurance plans. Cuomo would have the managers register with the state and be subject to new regulatory guidelines such as financial disclosure.