The bill introduced by the General Assembly of Rhode Island addresses the issue of excessive prescription drug prices by proposing amendments to Title 21 "FOOD AND DRUGS," adding a new chapter titled "PRESCRIPTION DRUG COST PROTECTION." This chapter includes definitions for terms such as "ERISA Plan," "Health Plan," and "Maximum fair price," among others. It sets forth regulations that prohibit the purchase or reimbursement of referenced drugs at a cost higher than the maximum fair price. The bill allows ERISA plans to opt-in to these provisions and mandates that entities selling drugs in Rhode Island maintain a registered agent and office within the state. It also requires that any savings from the bill's implementation be used to reduce consumer costs and promote health equity.

The bill outlines the responsibilities of participating ERISA plans to report annually on the savings achieved from the price regulations and how these savings are used to promote health equity. The insurance commissioner is responsible for establishing rules for calculating savings and setting report submission guidelines. Enforcement measures include fines of $1,000 per violation, with each transaction considered a separate violation, and the attorney general is authorized to enforce these provisions. Additionally, the bill sets penalties for manufacturers or distributors who withdraw drugs from sale to avoid rate limitations, with fines up to $500,000 or the amount of annual savings. The bill includes a severability clause to maintain its effectiveness even if parts are invalidated and would take effect upon passage.