Pharma Transparency

March 14, 2018

I am co-sponsoring legislation that, for the first time, creates transparency for pharmaceutical drug pricing in Connecticut.

House Bill 5384, An Act Concerning Prescription Drug Costs, would trigger a state review when drug prices soar beyond a reasonable threshold, and it would require disclosure of essential information about rebates and deals between drug manufacturers and pharmacy benefit managers to ensure that consumers get relief at the pharmacy counter.

The legislation would accomplish the following:

  • When a drug price increases beyond a 25-percent threshold, the Office of Health Strategy will have the authority to request a justification for that increase from the drug manufacturer, including details about research and development and related expenses. Ideally, this measure would eventually be expanded to include disclosure about drug manufacturers’ marketing expenses as well.
  • Any Pharmacy Benefit Manager registered to operate in Connecticut must disclose the total amount of rebates received from manufacturers, including how much of the rebate the PBM retained vs. how much was passed down to plan sponsors and consumers. They must also report their administrative fees, including any other payments by the manufacturer to the PBM that are not considered rebates.
  • And finally, consumers would get immediate relief at the pharmacy counter -- paying post-rebate costs instead of a drug’s list price.