BILL NUMBER: S599A
SPONSOR: SALAZAR
 
TITLE OF BILL:
An act to amend the insurance law, in relation to requiring certain
manufacturers of prescription drugs to notify the superintendant of any
proposed increase of the wholesale acquisition cost of such prescription
drugs
 
PURPOSE:
This bill would require manufacturers to provide at least 60 day notice
Of their intent to raise wholesale prescription drug costs to the
Department of Financial Services if the increase is 10% or more of the
total cost of the drug.
 
SUMMARY OF PROVISIONS:
Section 1 amends the insurance law to add new section 111-a relating to
notification of prescription drug price increases by manufacturers.
Section 2 provides the effective date.
 
JUSTIFICATION:
This legislation will provide early warning of increases in the price of
prescription drugs. Breakthrough medications offer tremendous clinical
benefits for patients, but they should not be a blank check. The prices
charged for prescription drugs are a major threat to keeping health care
affordable for New York employers and consumers. Exorbitant increases
in prescription drug prices have been consistent across all segments of
the pharmaceutical industry. For example, in 2016 Mylan increased the
price for a package of two EpiPen Auto-Injectors from just over $100 to
more than $600 without any warning or public justification. Since the
start of 2019, more than two dozen drug makers have raised the prices on
a wide array of drugs by double-digit percentages.
The bill will not prohibit manufacturers from increasing prices, but
would require notice of price increases, enhancing transparency of
prescription drug costs. Providing notice before a price increase of
more than 16 percent takes effect is important so that consumers,
employers, providers, health plans and the state are prepared and can
take steps before. the increase is implemented. It would also be impor-
tant for the policymakers to be provided with the rationale for the
increase including whether the price increases will benefit the public
to help fund research and development that improve patient care or will
it merely result in increasing the cost of health care.
 
AMENDED BILL
The "A" print of the bill increases the threshold percentage increase
from 10% to 16% and clarifies the applicability of the Freedom of Infor-
mation Law.
 
LEGISLATIVE HISTORY:
SENATE:
2019-2020: S5942 (Salazar) - Referred to Health
2021: S7499E (Salazar) - Referred to Rules
2022: Referred to Health, Passed Senate
2023: S 599 (Salazar) Passed Senate
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.