The Rhode Island General Assembly has introduced a bill aimed at curbing the high costs of prescription drugs to ensure the safety, health, and economic well-being of its residents. The bill highlights the negative impact of expensive medications on individuals' ability to access necessary treatments, the financial burden on both consumers and state-funded health programs, and the overall unsustainable rise in healthcare and insurance costs. It calls for legislative action to protect residents from the detrimental effects of high drug costs.

The bill proposes the addition of a new chapter titled "PRESCRIPTION DRUG COST PROTECTION" to Title 21 "FOOD AND DRUGS," which includes definitions for key terms and prohibits the purchase or reimbursement of a referenced drug at a cost higher than the maximum fair price set by the Secretary of the U.S. Department of Health and Human Services. It outlines the process for ERISA plans to opt-in, grants rulemaking authority to the insurance commissioner, and requires entities selling drugs in the state to maintain a registered office. The bill mandates that savings from these provisions be used to reduce consumer costs and promote health equity. Violations of the chapter would result in fines, and the attorney general would enforce the statute. The bill also addresses potential withdrawal of drugs from the market to avoid rate limitations and requires good faith negotiations between manufacturers, distributors, and payors, with penalties for non-compliance. It includes a severability clause to ensure the remainder of the bill remains effective if any part is invalidated.