Calif. law calls for greater drug price trans­parency

Modern Healthcare - - REGIONAL NEWS -

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.

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