Three States Move Forward on Drug Pricing Legislation

With federal action on drug prices and cost transparency stalled in Congress, three states have pushed through their own legislation, with one bill becoming law and another awaiting a governor’s signature.

Nevada and California advanced measures requiring manufacturers to disclose operating costs and give payers early notice of large price hikes. Maryland’s governor, meanwhile, is allowing a ban on generic drug price gouging to become law without his signature.

Nevada’s bill focuses mainly on essential diabetes medications, requiring drugmakers to annually report administrative, manufacturing and marketing costs, profits earned, and the total amounts of rebates, coupons and other patient assistance programs offered.

The bill also instructs companies to alert the state health department 90 days ahead of any planned increases in wholesale acquisition cost — and to list their sales representatives in the state, as well as the health care providers they have contacted over the past calendar year. The Nevada legislature passed the bill; it requires Gov. Brian Sandoval’s signature to become law.