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Who cares
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Sponsors
1 Co-sponsor
History
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to prescription drug cost transparency
In Assembly Committee · Health · Sponsor John T. McDonald III
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the public health law, in relation to prescription drug cost transparency
Purpose
The goal is analyze drug prices and underlying costs that drive drug pricing to inform the development of policies that will ensure access to affordable medications. By enhancing transparency in prescription drug pricing policymakers and purchasers can deliver on the promise of health care coverage and affordability.
Summary of provisions
Amends the public health law by adding a new section 278-a, which provides the legislative intent that there should be reporting of drug costs and utilization of pharmaceutical drugs, which would be of use by policymakers, government agencies and others to understand pharmacy cost trends. This requires that each manufacturer of a brand and generic medication available in New York shall file a report on pharmaceutical costs when the Wholesale Acquisition Cost (WAC) of the drug exceeds one thousand dollars for a thirty day supply, or over a three month period the drug has a cumulative price increase of three times the consumer price index. Also includes requirements and deadlines for the report from the manufacturer. Finally, specifics Department of Health requirements including a report on the information provided, addendums following the initial report, and an advisory workgroup to develop the reporting form.
Read the full memo (601 words)
Justification
The rising costs of prescription drugs are placing an increasing burden on payers, employers, and patients. Spending on prescription drugs jumped 13 percent to $374 billion in 2014, the biggest percentage increase since 2001. Diabetes patients saw the cost of Humlin R U-500 insulin jump from $12.01 to $54.48 per milliliter between 2007 and 2014, a price increase of more than 350 percent. Epi-pens that treat severe allergic reactions went up 222 percent in that same seven year period, reaching $182.35 per pen in 2014.
The price of prescription drugs is a critical factor in ensuring that patients can use them properly. The high cost of medications often induces patients to cut corners, making treatments less effective. According to the Centers for Disease Control and Prevention, almost eight percent of American adults attempt to save money by not taking their medicine as prescribed. An Express Scripts 2014 Drug Trend Report found that stretching the time between doses instead of taking medication as prescribed is a habit that costs the U.S. about $330 billion every year in preventable medical complications.
In order to ensure that drug prices are affordable, the market needs more transparency. Drug companies use the cost of research and development as justification for raising drug prices, but there is virtually no data available to the public showing the link between prices and development costs. The lack of competition also allows drug companies to set prices indiscriminately. That's compounded because the Food and Drug Administration (FDA) often takes too long to bring generics and alternate choices to consumers. Policymakers are faced with balancing the need to reward pharmaceutical breakthroughs in order to ensure innovation of future cures with the fact that payers and patients have limited resources to afford very high prices.
The public and policymakers need to know more about the pricing of drugs to determine if the value is worth the exorbitant costs. Although the Affordable Care Act (ACA) has increased transparency across our health care system, this has not reached prescription drug costs and pricing. The drug pricing information provided by this bill will provide accountability into the pricing process and help the public know the basis behind costs.
Legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.