A08836 Summary:
BILL NO | A08836 |
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SAME AS | SAME AS S08587 |
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SPONSOR | Berger |
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COSPNSR | |
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MLTSPNSR | |
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Amd §277, Pub Health L | |
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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. |
A08836 Actions:
BILL NO | A08836 | |||||||||||||||||||||||||||||||||||||||||||||||||
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01/18/2024 | referred to health |
A08836 Memo:
Go to topNEW 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.
A08836 Text:
Go to top 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. LBD06654-01-3A. 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.