The bill seeks to improve transparency in prescription drug pricing in Rhode Island by introducing a new chapter titled "Pharmaceutical Cost Transparency" to Title 5 of the General Laws. This chapter includes definitions related to the federal 340B drug pricing program and establishes a process for identifying high-cost prescription drugs. The state board of pharmacy, in partnership with the Rhode Island Department of Health, will annually identify up to fifteen prescription drugs that have experienced significant price increases. The attorney general will then require manufacturers to justify these price hikes, with the findings compiled into an annual report for the General Assembly. Additionally, the bill mandates health insurers to provide clear information about their prescription drug formularies and aligns dispensing fees for 340B drugs with those for non-340B drugs under the Medicaid program, while allowing for specific modifications for certain health centers.

Moreover, the bill establishes an advisory commission to develop options for health benefit plans for the 2027 plan year, focusing on out-of-pocket limits for prescription drug coverage. This commission will include various stakeholders and is required to meet at least six times before submitting its recommendations, which will cover cost-sharing trends and potential modifications to out-of-pocket limits. The act will take effect upon passage, with specific reporting deadlines set for February 15, 2026, and February 1, 2027. The bill emphasizes accountability in the pharmaceutical industry by imposing civil penalties on manufacturers that do not comply with information requests, thereby enhancing the overall transparency and accountability of pharmaceutical costs within the state's Medicaid program and health benefit exchange.