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The Seven Types of Drug Pricing Legislation to Watch

Summary

Increasingly, states are taking steps to control prescription drug spending and prices.

On March 12, Oregon became the 9th state to enact a law related to prescription drug pricing. Oregon’s drug price transparency law includes several provisions similar to legislation passed in California last year. Over time, legislators in several states have introduced legislation modeled after successful initiatives in other states.

Currently, more than half of states are considering legislation related to prescription drug pricing and costs, with bills in five states awaiting a signature from the governor.

Overall, recent prescription drug price and cost-focused legislation falls into one of the following categories, though states may pursue a combination of related drug pricing initiatives:

  • Study bills, which establish a task force or authorize a study focused on various aspects of drug costs and pricing
  • Reporting bills, which require some or all drug manufacturers to report certain information regarding their drug prices and company costs to the state. In addition, some legislation may require pharmacy benefit managers (PBMs) or health plans to report information to the state regarding their prescription drug costs and/or rebate agreements with manufacturers
  • Notification bills, which require certain manufacturers planning to launch or increase the price of a high-cost drug to notify the state and other payers of price increases
  • Marketing/Advertising bills, which add requirements and/or restrictions to pharmaceutical marketing and advertising activity
  • Price Control bills, which establish limits on the prices of certain drugs
  • Pharmacist Disclosure bills, which prevent PBMs and plans from prohibiting pharmacists from informing patients about drug prices and lower cost options
  • Manufacturer Cost-Sharing Assistance bills, which limit or prohibit manufacturers from offering discounts or reductions in an individual’s out-of-pocket costs, or require reporting on such discounts

To learn more about how we track and analyze emerging state issues, check out our latest Avalere State Reform 360™ video.

For more on drug pricing trends and news, connect with us.

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