Insurance and Real Estate Committee
JOINT FAVORABLE REPORT
Bill No.: SB-13
Title: AN ACT REDUCING PRESCRIPTION DRUG PRICES.
Vote Date: 3/10/2022
Vote Action: Joint Favorable Substitute
PH Date: 3/1/2022
File No.: 208
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Request of the Governor pursuant to Joint Rule 9
Sen. Saud Anwar
Rep. Michael Winkler
REASONS FOR BILL:
This bill would limit annual increases in drug prices to no more than inflation plus two percent,
enforced by a civil penalty equal to 80% of the excess revenues. Any penalties collected
would fund subsidies for residents on the exchange. The purpose of this program is to slow
the price increases of prescription drugs, which consistently increase faster than the rate of
inflation and are often unaffordable for those insured and uninsured alike.
This bill would also allow the Department of Consumer Protection to oversee the safe
importation of certain drugs from Canada. This program seeks to allow for the importation of
Canadian pharmaceuticals, which are most often less expensive than and just as effective as
their American counterparts, in an attempt to give consumers in Connecticut more affordable
options.
Proposed Substitute Language
Change to line 49 adding a wholesale acquisition cost of equal to or greater than $100.
RESPONSE FROM ADMINISTRATION/AGENCY:
Jonny Dach, Policy Director, Office of the Governor
The Office of the Governor supports this bill because many families in Connecticut struggle
to afford prescription drugs. Expanding access to affordable, high-quality care requires
addressing the underlying costs of that care across the healthcare sector.
Ted Doolittle, Office of the Healthcare Advocate
The Office of the Healthcare Advocate (OHA) supports this bill because underlying prices of
care, including the prices charged for prescription drugs, are a significant barrier preventing
many Connecticut families from receiving medically necessary care. The speaker stated that
price containment measures are a necessary strategy to restrain the price gouging and
unreasonably high prices that Connecticut consumers pay for prescription drugs. Additionally,
OHA supports drug reimportation for its effects on lowering consumer costs, but admits that it
is not the most effective way of managing out-of-control drug prices. OHA also urged the
state to consider other approaches to address the high prices of prescription drugs and
provided some examples in its testimony.
Michelle Seagull, Commissioner, Department of Consumer Protection
The Department of Consumer Protection (DCP) supports this bill because it would provide
the tools to begin to contain the rapidly rising costs of health care in Connecticut, including
growth in pharmaceutical spending, by requiring DCP to submit an application to the U.S.
Department of Health and Human Services (HHS) to establish a Canadian Drug Importation
Program to import safe and effective legend drugs from Canada.
Victoria Veltri, Executive Director, Office of Health Strategy
The Office of Health Strategy supports this bill because it helps tackle the underlying costs
of at least one of the major drivers of healthcare spending and supports the Covered
Connecticut program.
Kevin Kelly, Connecticut Senate Republicans
This speakers opposing testimony for this bill is the Senate Republican caucuss healthcare
platform.
NATURE AND SOURCES OF SUPPORT:
Ellen Andrews, Executive Director, Connecticut Health Policy Project
This speaker supports the bill because Connecticut residents spend more on drugs
per person than all other states but New York. This bill caps price increases for the benefit of
consumers, while also preserving sufficient incentives for innovation by allowing drug prices
to increase at a rate 2% above the rate of increase of our overall economy without penalty.
Connecticut Association of Health Plans
This organization supports the bill because the current trajectory of drug prices is
unsustainable. This bill invites a much-needed conversation on the cost of pharmaceuticals
and how to assure they are priced appropriately.
Tarik Kardestuncer, President, CT Orthopedic Society
This speaker supports the bill because he and his organization have seen firsthand that too
often a patient will compromise their treatment by either reducing their medication or skipping
doses because they cannot afford the exorbitant costs of their prescription drugs.
Anna Doroghazi, Policy and Outreach Director, AARP Connecticut
This speaker supports Sections 5-9 of this bill, allowing for Canadian importation of
pharmaceuticals, because safe and legal importation would help put downward pressure on
the prices of some prescription drugs.
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NATURE AND SOURCES OF OPPOSITION:
Carine Boustany, Global Head of Development Sciences, Boehringer Ingelheim
This speaker opposes the bill because this proposal oversimplifies the realities of an
extremely complicated healthcare payment model by focusing only on the costs of
prescription drugs and not addressing systemic inefficiencies and thus will not save
consumers any money in reality.
Partnership for Safe Medicines
This organization opposes this bill because it would not provide savings for Medicare
patients, Canadian stakeholders oppose importation proposals, and biologic medicine,
including insulin, cannot be imported.
A number of speakers voice concerns that the proposed legislation would serve as a
deterrent to the research and development of innovative prescription medicines and therapies
and could potentially jeopardize patients access to future medical advances.
Carine Boustany, Global Head of Development Sciences, Boehringer
Alexion Pharmaceuticals
Paul Pescatello, Senior Counsel and Executive Director, Connecticut Bioscience Growth
Council
Ryan Kelly, PhRMA
A number of speakers voice concerns that this bill would result in a loss of jobs in the
bioscience industry, particularly relating to research and development, thus harming the
states economy.
Cindy Bombard, President, Central Connecticut Chambers of Commerce
Tony Sheridan, President and CEO, Chamber of Commerce of Eastern Connecticut
Paul Pescatello, Senior Counsel and Executive Director, Connecticut Bioscience Growth
Council
Ryan Kelly, PhRMA
Several speakers oppose the bill because importing drugs from Canada is neither safe, nor
cost effective, and it will put Connecticuts patients at risk.
Nathan Tinker, CEO, Connecticut Pharmacists Association
Alexion Pharmaceuticals
Carine Boustany, Global Head of Development Sciences, Boehringer Ingelheim
Paul Pescatello, Senior Counsel and Executive Director, Connecticut Bioscience Growth
Council
Ryan Kelly, PhRMA
A number of speakers oppose the bill because it targets the drug manufacturers rather than
pharmacy benefit managers (PBMs), health plans, hospitals, the government, pharmacies,
and others who collectively earned more in past years on branded medicines than did the
companies that discovered, developed and manufactured the drugs.
John Burkhardt, Senior Vice President, Pfizer Inc.
Dawn Hocevar, President & CEO, BioCT
Nathan Tinker, CEO, Connecticut Pharmacists Association
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Anna Doroghazi, Policy and Outreach Director, AARP Connecticut
This speaker opposes Sections 2 and 3 of this bill because limiting annual price increases
does not lower the overinflated price the pharmaceuticals currently cost, but rather merely
limits how much they can go up. The speaker believes that more aggressive action is
needed, such as setting limits on how much certain payors within the state, including
insurance companies and state agencies, can pay for select high-cost prescription
medications.
Liz Dupont-Diehl, Special Projects Coordinator, CT Citizen Action Group
This speaker opposes the bill and instead encourages the legislature to consider a
Prescription Drug Affordability Board, or at least utilizing upper payment limits set by other
states and their boards.
Valerie Mermall, Program Leader, Sanofi
This speakers testimony was a presentation explaining the corporations principles and
perspectives for prescription medicine pricing.
Kelly Memphis, Director of State Government Affairs, Healthcare Distribution Alliance
This speaker opposes the bill because Canadian importation of prescription drugs violates
federal law, increases the potential for counterfeit drugs, and is opposed to by the Canadian
stakeholders.
Ryan Kelly, PhRMA
This speaker opposes the bill because this legislation ignores that there are meaningful
policies for addressing affordability without government price setting that could reduce
treatment options and assumes incorrectly that the price a patient pays is determined solely
by drug manufacturers. Additionally, the speaker states that this legislation raises
constitutional concerns.
Reported by: Andrew Miano Date: March 22, 2022
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