Amendment ID: S2202-17

Amendment 17

Prescription Drug Transparency

Ms. Forry, Mr. Eldridge, Ms. Friedman and Ms. Gobi move to amend the bill in section 21 by adding in line 363 after the term “entity” the following new language:-

“that studies and compares the clinical effectiveness and value of prescription drugs”

And in line 369 after the term “agency,” the following new language:-

“and to acute hospitals, ambulatory surgical centers, and surcharge payors,”

And in section 30 by striking the first two paragraphs and replacing them with the following new language:-

Section 10A. (a) The center shall promulgate regulations necessary to ensure the uniform analysis of information regarding pharmaceutical manufacturing companies and pharmacy benefit managers and that enable the center to analyze: (i) year-over-year wholesale acquisition cost changes; (ii) year-over-year trends in net expenditures; (iii) net expenditures on subsets of brand and generic pharmaceuticals identified by the center; (iv) research and development costs as a percentage of revenue; (v) research and development costs paid with public funds; (vi) annual marketing and advertising costs, identifying costs for direct-to-consumer advertising; (vii) annual profits over the most recent five-year period; (viii) information regarding trends of estimated aggregate drug rebates and other price reductions paid by a pharmaceutical manufacturing company in connection with utilization of all pharmaceutical drug products offered by the pharmaceutical manufacturing company; (ix) information regarding trends of estimated aggregate drug rebates and other price reductions paid by a pharmacy benefit manager in connection with utilization of all drugs offered through the pharmacy benefit manager; (x) information regarding pharmacy benefit manager practices in passing drug rebates or other price reductions received by the pharmacy benefit manager to a private or public health care payer or the consumer; (xi) information regarding discount or free product vouchers that a retail pharmacy provides to a consumer in connection with a pharmacy service, item or prescription transfer offer or to any discount, rebate, product voucher or other reduction in an individual's out-of-pocket expenses, including co-payments and deductibles under section 3 of chapter 175H; and (xii) any other information deemed necessary by the center.

(b) The center shall require the submission of available data and other information from pharmaceutical manufacturing companies and pharmacy benefit managers including, but not limited to: (i) changes in wholesale acquisition costs for prescription drug products, as identified by the center; (ii) aggregate, company-level research and development and other relevant capital expenditures for the most recent year for which final audited data are available for prescription drug products as identified by the center; (iii) the price paid by the manufacturer to acquire the prescription drug product, if not developed by the manufacturer; (iv) the five-year history of any increases in the wholesale acquisition costs; (v) the average profit margin of the prescription drug product over the most recent five-year period; (vi) a description, suitable for public release, of factors that contributed to reported changes in wholesale acquisition costs for prescription drug products identified by the center.