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States Pass Fewer Drug Manufacturer Pricing Disclosure Laws in 2018 | JDSupra

While the introduction of state legislation that would require drug manufacturers to disclose pricing and other information did not slow down in 2018, the number of bills that were made law did slow down. During 2018, 22 state legislatures considered bills seeking to require drug manufacturers to disclose pricing information; however, most of the legislation failed.

Two New State Laws

Since my Drug Manufacturer Pricing Disclosures: Mid-Year 2018 Update, two states—Vermont and New Hampshire—passed laws that arguably touch on requiring pharmaceutical manufacturers to report drug prices.[1]

Vermont
Further, the new law requires a drug manufacturer to notify the AG if it intends to introduce a new drug with a wholesale acquisition cost (“WAC”) that exceeds the $670 threshold set for specialty drugs under Medicare Part D. The notification must be provided three days prior to commercial release of the drug. Thereafter, within 30 days of the three-day notification, the manufacturer must provide additional information to the AG including a description of marketing and pricing plans and, if the drug was acquired from another company, the acquisition date and price of the drug. The AG will make information available on its website, but do so in a manner that does not allow identification of the drug. The law also creates a working group to study drug pricing throughout the supply chain to identify opportunities for savings and for increasing price transparency.

On May 30, 2018, Vermont, one of the few states that previously passed legislation requiring drug manufacturer pricing disclosures, expanded its reporting requirements. Specifically, Vermont Act No. 93 (S. Bill 92), expanded Vermont’s transparency law by requiring the Department of Vermont Health Access and health insurers with more than 5,000 covered lives to create lists of 10 prescription drugs for which the payer’s net cost has increased by 50 percent or more over the past five years or more than 15 percent annually. From those lists, the Attorney General (“AG”) will identify 15 drugs for which the drugs’ manufacturers must provide a justification for the price increases which will be made public. Previously, manufacturer reports were not publicly disclosed. Under the new law, a public version of such reports will be posted online. In the public versions, manufacturers can request to redact proprietary or confidential information, subject to the AG’s approval.

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States Pass Fewer Drug Manufacturer Pricing Disclosure Laws in 2018 | Blank Rome LLP – JDSupra.