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’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
Trade Organizations Challenge Nevada’s Drug Price Transparency Law
We recently wrote about the newly enacted Nevada drug price transparency law here. The law requires manufacturers of prescription diabetes drugs to disclose certain drug cost information to the state Department of Health and Human Services (“Department”). In addition, the law imposes several unique reporting requirements on non-profit patient advocacy groups and pharmaceutical sales representatives. We expected that these reporting requirements would garner some attention and,… More
California Price Transparency Legislation Passes Legislature
California’s drug price transparency legislation, SB 17, passed the State Assembly on September 11 by a vote of 66-9. The bill included several amendments to the version of the bill that passed the State Senate at the end of May. The State Senate then passed the amended legislation on September 13. Among the most important amendments were changes to “triggers” for price reporting, and for advance notice requirements relative to WAC increases.… More
Hearings on Massachusetts Transparency Bills Set for July 11
Three pieces of Massachusetts pharmaceutical pricing legislation are set for a hearing before the legislature’s Joint Committee on Healthcare Financing at 11:00 AM on July 11. S. 652, sponsored by Sen. Mark Montigny, would impose strict reporting requirements on manufacturers of covered drugs, while empowering the state Health Policy Commission (HPC) to annually identify drugs with prices “excessively higher than justified,” and authorizing the Attorney General to bring consumer protection actions against manufacturers charging such prices. … More
Nevada Enacts Drug Price Transparency Law
Nevada Governor Brian Sandoval recently signed into law a drug price transparency bill, SB 539. The law primarily concerns price transparency measures for prescription diabetes drugs, but also imposes reporting requirements on nonprofit patient advocacy groups and pharmaceutical sales representatives that we’ve yet to see enacted in any other state.
First, the law requires nonprofit patient advocacy groups to annually compile a report disclosing any payment,… More