Californians get drug pricing transparency law
October 8, 2017
• Requires prior notice of price increases
• “Drug companies threw everything they had at this bill”
Drug makers will be required to give prior notice to buyers before raising prices and health plans will be required to report the proportion of the health insurance that is spent on prescription drugs under a proposal signed into law on Monday.
"This pivotal moment marks a major victory for patients, healthcare providers and local governments alike in the battle to rein in spiraling prescription drug prices," says the California Association of Health Plans.
“Public anger at rising drug prices has been growing for some time, and Californians expect their government to do something about it,” said the author of the legislation, state Sen. Ed Hernandez, D-West Covina, last month when the measure was approved by the Legislature.
“Drug companies threw everything they had at this bill,” said Mr. Hernandez. “The reason Big Pharma hates this bill so much is that it’s going to work.”
The lawmaker, who is also a doctor, said drug companies try to hide their price gouging by helping consumers with their co-payments or providing discounts to the uninsured, but all this does is shield consumers from the true cost of the drug while driving up insurance premiums for everyone.