Addressing prescription drug cost transparency (Robinson, Johnson, Harris)

see companion.

1ST SUBSTITUTE COMPARED TO ORIGINAL (Committee on Health Care and Welness):
With respect to issuer reporting, the substitute bill adds requirements that issuers report their total spending on the 25 most frequently prescribed drugs and enrollee spending on prescription drugs. It also requires the analysis of the impact of prescription drug costs to be compared to other health care costs.

With respect to manufacturer reporting, the substitute bill removes reporting requirements for drugs that will be introduced to the market. It modifies the information that must be reported by removing itemized costs, pricing in Canada, and the manufacturer's profit attributable to the drug and by adding the length of time the drug has been on the market and whether the drug is generic or brand name. It also requires the justification of the price increase to be an economic justification.

With respect to the data organization's report, the substitute bill requires the report to demonstrate the impact of prescription drug costs as compared to other health care costs. The substitute bill also adds the Health Care Authority reporting requirement and modifies the findings and several definitions.

The Appropriations Committee recommended the addition of a null and void clause

(1) Changes the reporting requirements for manufacturers to the data organization. Manufacturers must provide the organization with the wholesale acquisition cost history, production and sale costs, and financial assistance provided for certain covered drugs. (2) Provides a new requirement that manufacturers report certain price increase information to purchasers at least 60 days before the increase goes into effect for a covered drug. (3) Removes specific requirements for the data organization's report to OFM and directs OFM to prepare a report based on the data collected by the organization that demonstrates the overall impact of drug costs on health care premiums. (4) Requires OFM to produce a second report for the legislature based on prescription drug data collected from the allpayer health care claims database concerning variances in billed charges for prescription drugs.

(1) Requires insurance carriers, drug manufacturers, drug wholesalers, pharmacy benefit managers, and pharmacy services administrative organizations to report certain drug pricing information to a data organization. The data organization must collect the data and provide it to the Office of Financial Management, which must produce a report to the Legislature.

Hearing Date: Saturday, February 24, 2018 -- 9:00 am

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