What California ’s New Drug Transparency Law Does – And Doesn’t – Do

We have written numerous times on the transparency bills in various states. California’s Senate Bill 17 is one of those bills that has worked its way through the statehouse and now sits at Governor Jerry Brown’s desk. The bill aims to make drug prices more transparent for both public and private health plans by requiring pharmaceutical companies to notify health insurers and government health plans at least sixty days prior to raising prices more than sixteen percent over a two-year period of particular drugs with wholesale acquisition costs over $40. It would also require the companies to explain the reason behind the increase in price. All of the information provided to the state would be made public online for citizens to review. Additionally, the California Research Bureau would be required to report to the Legislature about the implementation of these provisions, and would subject these provisions to review by the appropriate committees of the Legislature. The effective date would be no earlier than January 1, 2019. Additionally, the bill requires the companies to break down and report on premium and drug cost information – allegedly providing the state with data on the percentage of premiums and the increases in premiums that can be attributed to prescription drug costs. Governor Brown has until October 15, 2017, to decide whether or not he wants to make the passed bill law. State Senator Ed Hernandez, who wrote the bill, is confident that Governor Brown will s...
Source: Policy and Medicine - Category: American Health Authors: Source Type: blogs