Nevada passes insulin drug pricing transparency bill | Business Insider

Nevada is one of 23 states with proposed legislation to take on the rising cost of prescription drugs. But unlike others that focus on drug prices in a general sense, the hybrid bill focuses on two specific groups of drugs that are used to treat diabetes: insulin and biguanides.

It’s the latest milestone in government actions at the local, state, and national levels that attempt to change the way we spend money on prescription drugs.

Here’s what the law does

  • The law requires diabetes drugmakers that have raised drugs’ list prices by a certain amount to disclose information about the costs of making and marketing the drugs, along with what rebates they provide.
  • Pharmacy benefit managers, the companies responsible for negotiating rebates to the prices drugmakers set, will also have to disclose what rebates they negotiate with diabetes drugmakers, along with what rebates the PBMs keep.
  • The law also works to create more transparency around PBMs, compelling them to act in insurers’ best interests and bans PBMs from forbidding pharmacists from discussing lower-cost options with patients, something called a gag clause.
  • The law requires pharmaceutical sales representatives to register with the state and have them supply certain details about the conversations they have with healthcare providers. It’s modeled after an ordinance in Chicago that requires representatives to get a special license. Chicago’s ordinance goes into effect in July.
  • Nonprofits will have to disclose when they get funding from drug companies, PBMs and health insurers. A March report published in the New England Journal of Medicine found that eight in ten patient advocacy groups had received some level of drug industry funding. Some of the organizations included in the report did not disclose donor information.

It’s a slight departure from some of the original intentions of the diabetes bill. SB265 originally set up a price control, which could effectively cap insulin price increases at the rate of inflation. And an earlier version of the bill required drugmakers to disclose how they set their drug prices, as well as provide information about how much is spent on marketing and research. Both sections were amended before the bill joined up with SB 539.

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Nevada passes insulin drug pricing transparency bill – Business Insider.