California Takes On Drug Pricing: Real Progress Or Illusion?

Californians and others around the country following the California legislature’s multiyear debate on prescription drug pricing may have stood up and taken notice on September 13 when the state Senate followed the Assembly in passing SB-17 to facilitate greater transparency in brand-name and generic drug pricing. While sponsors often make grandiose claims about the potential impact of their legislation, California senator Ed Hernandez may have set a new standard when he declared that the passage of SB-17 was “a monumental achievement for the entire nation” and “one of the most transformative pieces of health legislation in the country.” The bill, backed by a broad coalition of consumer advocates, insurers, employers, and unions and strongly opposed by the Pharmaceutical Research and Manufacturers of America (PhRMA) and California life science companies, now goes to Governor Jerry Brown who has until October 15 to sign or reject the bill. Whichever way the governor goes, one thing is certain. This legislation is unlikely to have any impact on drug prices in California or anywhere else. In fact, if it has any impact at all, it’s possible it could lead to higher drug prices. A Public Policy Conundrum The context for SB-17 is the increasingly charged political atmosphere around drug pricing. The growing share of drug spending on high-cost specialty drugs, the regular list-price increases for many drugs beyond inflation, and the high-profile cases of EpiPen and pharma ...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Drugs and Medical Innovation California California SB-17 prescription drug pricing Source Type: blogs