California Senate Bill 1010 (SB 1010) requires pharmaceutical companies to give at least two months’ notice to state programs if they increase prices by more than 10 percent for a particular medication and 30 days’ notice for new drugs priced higher than $10,000. However, the bill fails to account for the fact that most price increases are offset by discounts, rebates and other payments by pharmaceutical companies to pharmacy benefit managers (PBMs) and insurance companies—payments the PBMs and insurers keep instead of passing on to patients in lower prices or premiums. Additionally, the advance notice provisions would aid the prescription medicine “gray market” of shady wholesalers and distributors. A 2012 report by Congress found that the gray market took advantage of the national drug shortage to “charge exorbitant prices for drugs used to treat cancer and other life-threatening conditions. Unfortunately, SB 1010 will do nothing to promote patient access and affordability. Read full opinion here.
Last Updated on May 12, 2020 by Aimed Alliance
