HARTFORD - State Rep. Linda Gentile, D-Derby/Ansonia, applauded House approval of legislation that creates transparency requirements for manufacturers of prescription drugs having large price increases.
House Bill #5384, An Act Concerning Prescription Drug Costs, will lead to consumer savings at pharmacies and will require drug companies to justify price increases when the price of a drug jumps by 20 percent in one year or by 50 percent over three years.
“This measure is very important to the constituents we serve and I am extremely pleased to see it becoming a reality,” Gentile said.
“Healthy individuals may not be aware of the struggle that chronically ill patients or those with serious conditions have to endure in order to get the medications they need. This bill will lead consumers to much needed savings and more pricing transparency.”
Provisions in the bill include:
1. Information about new drugs in the FDA approval pipeline so we can better plan for new drug spending on the state employee plan and Medicaid.
2. Insurers must include information on the top 25 highest cost drugs, top 25 with greatest increases and the portion of premium that increased because of drug spending on plan when they file their rates with the state Insurance Department.
3. Pharmacy benefit managers (PBMs) must disclose rebates they received from drug companies and amount of rebate they passed onto consumers versus the amount they retained. Connecticut would become the first state in the country to require this.
4. Insurers must either provide consumers with point of sale rebate at pharmacy counter or certify that they are using rebates to lower premiums
The bill now goes to the senate for consideration.
This is a press release from Gentile's office.
