Relates to the price gouging of pharmaceuticals

Title of bill

An act to amend the general business law, in relation to the price gouging of pharmaceuticals

Summary of provisions

Section 1. Defines pharmaceuticals; provides that no manufacturer or wholesaler can sell a pharmaceutical at an unconscionably excessive price; gives court discretion to determine unconscionably excessive price; allows the Office of the New York State Attorney General the ability to file a motion to cease sale of a pharmaceutical at unlawful price; allows the court to impose a maximum penalty of $1,000,000 and possible restitution to those aggrieved.

Section 2. This act shall take effect immediately.

Justification

There is minimal regulation on the pricing of pharmaceuticals. In the United States, a system has developed where drug companies are putting profits ahead of people's health. Based on this price-gouging, accessibility to medicine is becoming a serious problem.

One example is epinephrine, an injection of which is used to treat anaphylactic shock. In 2007, the average cost of a two-pack of epinephrine auto-injectors for those with medical insurance was $94. Today, the price of the treatment for those with medical insurance has steadily risen to more than $600.

Another example is the anti-parasitic drug, Daraprim. After an acquisition in August of 2015, the price of the drug was raised from $13.50 a tablet to $750 a tablet. Those with medical insurance are now paying anywhere from $1,000 to $16,000 in co-pays for a bottle of Daraprim.

This legislation is intended to give regulatory oversight to the NYS Attorney General in order to create equal access and affordability to pharmaceuticals for all New Yorkers.

Legislative history

This is a new bill.

Fiscal implications

None

Effective date

This act shall take effect immediately.