Calif. law calls for greater drug price transparency
Drug companies doing business in California will soon have to notify the public two months in advance of dramatic price spikes under legislation signed last week by Gov. Jerry Brown.
It is one of the strictest drug-price transparency laws in the country, as states move to shine a spotlight on rapidly rising costs in the hopes of pressuring drugmakers to keep them down.
Approximately 1 in 4 Americans has trouble affording prescription drugs, according to the Kaiser Family Foundation. Price spikes in EpiPen and other critical drugs in recent years have sparked outrage from consumers and lawmakers.
California’s law applies to any prescription drugs that sell for a wholesale cost of more than $40, including drugs purchased by the state for Medi-Cal and Medicare.