California Governor Signs One Of Strictest Drug Transparency Bills In Nation
The pharmaceutical industry has fought hard to kill the legislation, and it will likely be a legal target now that the bill is law.
The Associated Press:
California To Require Advanced Notice On Hikes In Drug Costs
Drug companies doing business in California will soon have to notify the public two months in advance of dramatic price spikes under legislation signed Monday by Gov. Jerry Brown. California's legislation marks one of the strictest drug-price transparency laws in the country, as states move to shine a spotlight on rapidly rising costs in the hopes of enticing drugmakers to keep them down. (Ronayne, 10/9)
The Wall Street Journal:
California Governor Signs Bill Requiring Greater Drug Price Transparency
The law, which drew bipartisan legislative support and Democrat Gov. Jerry Brown signed Monday, requires that, starting Jan. 1, 2019, companies give a 60-day notice if list prices of drugs are raised more than 16% in a two-year period. The law applies to drugs with a wholesale price of more than $40 for a 30-day supply. Health plans and insurers would also have to file annual reports outlining how drug costs affect health-care premiums in the state. (Armental, 10/9)
Los Angeles Times:
Californians Will Get More Information On What’s Driving Prescription Drug Prices Under Law Signed By Governor
Supporters call the law the nation’s most sweeping effort to make prescription drug pricing more transparent. The measure would require drugmakers to provide notice to health plans and other purchasers 60 days in advance of a planned price hike if the increase exceeds certain thresholds. The measure, SB 17 by state Sen. Ed Hernandez (D-Azusa), will also require health plans to submit an annual report to the state that details the most frequently prescribed drugs, those that are most expensive and those that have been subject to the greatest year-to-year price increase. (Mason, 10/9)
California Healthline:
New Law Challenges ‘Evils’ Of Pharma Profits, California Governor Claims
“Californians have a right to know why their medical costs are out of control, especially when pharmaceutical profits are soaring,” Brown said. “This measure is a step at bringing transparency, truth, exposure to a very important part of our lives. That is the cost of prescription drugs.” (Dembosky, 10/9)
Sacramento Bee:
Drug Price Measure Signed By Jerry Brown
Brown, in a signing ceremony in his office, said Californians have a right to know why their medical costs are “out of control, especially when pharmaceutical profits are soaring.” “That’s the takeaway message,” Brown said, lamenting the growing inequities in California and throughout the country. (Cadelago, 10/9)
KPCC:
Gov. Brown Signs First Of Its Kind Drug Transparency Bill
During a press conference that ended with the governor signing the measure, the bill’s sponsor, Senator Ed Hernandez (D-West Covina) called it one of the most comprehensive bills in the country. The chair of the senate health committee ended his remarks by challenging Washington lawmakers. "I want to challenge our federal officials to do the same thing at a national level," said Hernandez. "So that we can make sure that every single person in this country, not only has access to health care, but that they can afford their health care." (Faust, 10/9)
Politico Pro:
California's New Drug Law Could Serve As Template For Other States
Gov. Jerry Brown, in a rare bill-signing ceremony on Monday, approved drug legislation that doesn't directly affect prices but is designed to keep costs in check by requiring drug manufacturers to give purchasers advance notice when they significantly raise prices and making them justify the hike. Advocates see Senate Bill 17 not just as a rare blow to the pharmaceutical industry, but also as a pushback by the country's most populous state against inaction in Washington D.C. and against inequities fueled by special-interest groups and powerful lobbying entities. (Colliver, 10/9)