Active Summer in State Drug Pricing Transparency Laws

During the summer of 2019, a number of states enacted new drug price transparency laws, swelling the number of states with such laws to 11.  Colorado, Maine, Maryland, Texas, and Washington joined California, Connecticut, Louisiana, Nevada, and Oregon with transparency laws.  Oregon also supplemented its transparency laws with an advance notice requirement for certain price increases.

Washington: On May 9, Washington enacted HB 1224. … More

Massachusetts Enacts Medicaid Supplemental Rebate Law

On July 31, 2019, Governor Charles Baker signed a law designed to increase supplemental rebates for prescription drugs in the Massachusetts Medicaid program (MassHealth).  This law follows on a somewhat similar law enacted in New York in 2017.

Under the new Massachusetts law, the state’s Executive Office of Health and Human Services (EOHHS) can propose and negotiate for supplemental rebates for covered outpatient drugs directly with pharmaceutical manufacturers under an exemption to the Massachusetts public procurement law. … More

Massachusetts Senate Ways and Means Budget Maintains Drug Price Rebate Language

On May 7, 2019, the Ways and Means Committee of the Massachusetts Senate reported its final budget (S.4), which includes within it authority for the Commonwealth’s Executive Office of Health and Human Services (“HHS”) to directly negotiate supplemental rebates with drug manufacturers for covered drugs on behalf of the Massachusetts Medicaid program, MassHealth.  The operative language appears in outside sections 4 and 39 of the budget and is substantially similar to drug rebate language initially appearing in the Governor’s FY20 budget.… More

Massachusetts House Pushes Medicaid Supplemental Rebate Law in Budget

On April 11, 2019, the Massachusetts House Committee on Ways and Means released its FY 2020 budget (H.3800).  The legislation includes provisions authorizing MassHealth (the Massachusetts Medicaid program) to negotiate supplemental rebates directly with drug manufacturers, and provides for further proceedings before the Health Policy Commission for manufacturers refusing to negotiate supplemental rebates at levels satisfactory to the Commonwealth. These provisions represent amendments to a MassHealth drug pricing proposal included in Governor Baker’s FY 2020 filing in January.… More

Maryland Forges Ahead on Drug Price Transparency

Only weeks after the Supreme Court declined to hear Maryland’s appeal of the 4th Circuit decision striking down the state’s recent drug price transparency law, the Maryland legislature has again resolved to address prescription drug pricing.  Recently cross-filed Senate and House bills in the new legislative session incorporate many of the same reporting requirements underpinning the now invalidated 2017 law, but expand the scope of the reporting requirements to include PBMs and insurance carriers in addition to prescription drug manufacturers.… More

Massachusetts Senate Passes Bill Aiming to Increase Drug Price Transparency and Notification Obligations

On October 17, 2017, the Massachusetts Senate Working Group on Health Care Cost and Containment and Reform (initially convened in the fall of 2016) released draft legislation entitled “An Act furthering Health Empowerment and Affordability by Leveraging Transformative Health Care.”  The Massachusetts Senate engrossed the bill, with significant amendments, on November 11, 2017 (the “bill”).  In addition to proposed changes in the regulation of hospitals and insurers operating within the state,… More

PhRMA Mounts Legal Challenge to SB 17 in California

The recently enacted California drug price transparency law SB 17 is facing a legal challenge to its constitutionality in the form of a PhRMA lawsuit filed in the US District Court for the Eastern District of California on December 8.  In PhRMA v. Brown, PhRMA is seeking declaratory judgment that the drug pricing provisions of SB 17 are unconstitutional and a permanent injunction against their implementation and enforcement.… More

California OSHPD Announces SB 17 Implementation Plan

California’s Office of Statewide Health Planning and Development (OSHPD) has released an implementation plan for California’s new drug transparency law SB 17.  The first part of the law to take effect will require manufacturers of drugs experiencing greater than 16% increases in WAC over three calendar years to provide 60 days’ advance notice to state purchasers as well as healthcare service plans, health insurers, and PBMs that register with OSHPD. … More

California SB 17 Enacted

On October 9, California Governor Jerry Brown signed SB 17, legislation mandating advance notice and price transparency reporting for drugs experiencing greater than 16% increases in WAC over three calendar years and new drugs introduced at a WAC above the Medicare Part D specialty drug threshold.  The legislation will take effect January 1, 2018, although the reporting requirements to the Office of Statewide Health Planning and Development will begin in the first quarter of 2019.

California now joins Maryland, New York, and Nevada in having enacted pharmaceutical cost control and/or transparency legislation in 2017.  Additional information on SB 17 can be found here and here.

State Drug Price Transparency Legislation: What to Watch for This Fall

After a slow-down during the summer recesses, action on the drug price transparency front is beginning to increase as we enter the fall season.  Here are a few states to watch in the coming months:

California

California’s price transparency legislation, SB 17, passed the legislature on September 13, and now goes to Governor Jerry Brown for his signature.  The legislation had passed the Senate by a 28-10 vote on May 30,… More