The bill introduced in the General Assembly is designed to protect Rhode Island residents from the negative effects of excessive prescription drug prices by adding a new chapter titled "PRESCRIPTION DRUG COST PROTECTION" to Title 21 "FOOD AND DRUGS." It aims to safeguard the health, safety, and economic well-being of the state's residents by preventing unreasonable drug price increases that can limit access to medications and drive up healthcare and insurance costs. The bill includes definitions for various terms related to the legislation, such as "ERISA Plan," "Health Plan," and "Maximum fair price." It prohibits the purchase or reimbursement of referenced drugs at a cost exceeding the maximum fair price set by the Secretary of the U.S. Department of Health and Human Services and outlines the opt-in process for ERISA plans. The bill also requires entities selling drugs in Rhode Island to maintain a registered office and agent within the state and mandates that savings from the act be used to reduce consumer costs and promote health equity.

The legislation mandates that participating ERISA plans report to the insurance commissioner on the savings achieved and the use of those savings to promote health equity. The insurance commissioner is tasked with establishing rules for calculating and reporting savings, and violations of the chapter are subject to a $1,000 fine. The attorney general is authorized to enforce the statute's provisions. The bill also addresses the potential withdrawal of drugs from the market to circumvent rate limitations, requiring notice to the insurance commissioner and attorney general, with penalties for violations. Manufacturers or distributors are prohibited from refusing to negotiate in good faith with payors or sellers of prescription drugs, with penalties for non-compliance. The bill includes a severability clause to ensure that if any part of the legislation is invalidated, the remainder will remain in effect.