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A08836 Summary:

BILL NOA08836
 
SAME ASSAME AS S08587
 
SPONSORBerger
 
COSPNSR
 
MLTSPNSR
 
Amd §277, Pub Health L
 
Requires the commissioner of health to include in annual reports information regarding the cost and increase in cost of the ten prescription drugs on which the state expends the most money and which have had certain costs increased by fifty percent or more over the past five years or by ten percent or more during the previous calendar year.
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A08836 Actions:

BILL NOA08836
 
01/18/2024referred to health
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A08836 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8836
 
SPONSOR: Berger
  TITLE OF BILL: An act to amend the public health law, in relation to requiring the commissioner of health to include in annual reports information regard- ing the cost and increase in cost of certain prescription drugs   PURPOSE: The purpose of this bill is to require manufacturers to report to the state how often the price of prescription drugs has increased and the rationale for such increases.   SUMMARY OF PROVISIONS: Section 1: amends subdivision 1 of section 277 of the public health law, as amended by section 18 of part A of chapter 56 of the laws of 2013 to require the commissioner and the drug utilization review board to provide a list of the ten prescription drugs on which the state spent the most money in the previous year, prescriptions that have increased more than 10% of the wholesale cost in the previous year, and drugs that have increased more than 50% over the previous five years. Manufacturers of prescription drugs that appear on these lists shall be required to provide a report explaining the rationale and factoring contributing to the cost increase. Section 2: provides the effective date.   JUSTIFICATION: The exorbitant cost of prescription medications creates a barrier for patients to receive the treatments they need. Policymakers and the public would benefit from increased transparency, including requiring pharmaceutical companies to disclose the research, development, market- ing and manufacturing costs, as well as the profits, attributable to their drugs. This legislation would require the state's Drug Utilization Review Board(DURB) to identify up to 10 prescription drugs on which the state spends significant health care dollars and for which the wholesale acquisition cost has increased by 50 percent or more over the last five years or increased by 10 percent or more over the last 12 months. The drug's manufacturer would be required to provide an explanation to the DURB on the pricing increase, including the factors contributing to the increase and the role each factor played in the increase. DURB would then issue an annual report based on the information it receives, but would be required to protect confidential commercial information and trade secrets. Given the double-digit growth in the price of prescription drugs, trans- parency around the reasons for these increases would help in understand- ing the impact increase in drug prices has on the health care costs for employers and consumers and whether price increases are benefiting the public by funding research and development that improve patient care or are merely increasing the cost of health care.   LEGISLATIVE HISTORY: 2020: A7922 - Referred to Health 2021: A741 - Referred to Health 2022: A741 - Referred to Health 2023: A2861 - Referred to Health 2023: A2861 - Stricken   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A08836 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8836
 
                   IN ASSEMBLY
 
                                    January 18, 2024
                                       ___________
 
        Introduced by M. of A. BERGER -- read once and referred to the Committee
          on Health
 
        AN  ACT  to  amend  the  public health law, in relation to requiring the
          commissioner of  health  to  include  in  annual  reports  information
          regarding the cost and increase in cost of certain prescription drugs
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 277 of the public health  law,  as
     2  amended  by  section  18 of part A of chapter 56 of the laws of 2013, is
     3  amended to read as follows:
     4    1. The commissioner, in consultation with the drug utilization  review
     5  board,  shall  undertake  periodic  reviews,  at  least annually, of the
     6  preferred drug program which shall include consideration of:
     7    (a) the volume of prior authorizations being handled,  including  data
     8  on  the  number  and characteristics of prior authorization requests for
     9  particular prescription drugs;
    10    (b) the quality of the program's responsiveness, including the quality
    11  of the administrator's responsiveness;
    12    (c) complaints received from patients and providers;
    13    (d) (i) a list of the  ten  prescription  drugs  on  which  the  state
    14  expends  the most money and for which the wholesale acquisition cost has
    15  increased by fifty percent or more over the past five years  or  by  ten
    16  percent  or  more  during  the  previous calendar year. The commissioner
    17  shall: include the percentage of the wholesale acquisition cost increase
    18  for each drug on the list; rank the drugs on the list  from  those  with
    19  the  largest  increase  in  wholesale acquisition cost to those with the
    20  smallest increase; indicate whether each drug was included on  the  list
    21  based on its cost increase over the past five years or during the previ-
    22  ous  calendar  year,  or both; and provide the state's total expenditure
    23  for each drug on the list during the most recent calendar year; and
    24    (ii) a list of the ten prescription drugs on which the  state  expends
    25  the  most  money and for which the cost to the state, net of rebates and
    26  other price concessions, has increased by fifty percent or more over the
    27  past five years or by ten percent or more during the  previous  calendar
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06654-01-3

        A. 8836                             2
 
     1  year.  The commissioner shall rank the drugs on the list from those with
     2  the greatest increase in net cost to those with  the  smallest  increase
     3  and  indicate  whether  each  drug was included on the list based on its
     4  cost  increase  over the past five years or during the previous calendar
     5  year, or both; and
     6    (iii) a manufacturer of a prescription drug that appears on a list  as
     7  described  in subparagraph (i) or (ii) of this paragraph shall submit to
     8  the commissioner a report that explains: (A) all material  factors  that
     9  have  contributed  to  the  wholesale acquisition cost increase for such
    10  drug including but not limited to  materials  and  manufacturing  costs,
    11  spending  on  research  and development costs, spending on marketing and
    12  advertising, and  spending  on  patient  assistance  programs;  (B)  the
    13  percentage of the total wholesale acquisition cost increase attributable
    14  to  each  factor;  (C)  an  explanation  of  the  role of each factor in
    15  contributing to the wholesale acquisition cost increase; (D)  the  total
    16  revenue  and  the  net  profit  of  the manufacturer for the most recent
    17  calendar year; and  (E)  any  additional  information  the  manufacturer
    18  chooses to provide related to drug pricing decisions;
    19    (e)  the savings attributable to the state, and to each county and the
    20  city of New York, due to the provisions of this article;
    21    [(e)] (f) the aggregate amount of supplemental rebates received in the
    22  previous fiscal year and in the current fiscal year, to date;  and  such
    23  amounts are to be broken out by fiscal year and by month;
    24    [(f)]  (g)  the  education and outreach program established by section
    25  two hundred seventy-six of this [article] title.
    26    § 2. This act shall take effect immediately.
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