The proposed bill, HB 5116, aims to enhance transparency in pharmaceutical pricing by establishing a new chapter, "Pharmaceutical Cost Transparency," within Title 5 of the General Laws. It mandates the state board of pharmacy, in collaboration with the department of health, to annually identify up to fifteen prescription drugs that have seen significant cost increases. Specifically, this includes drugs with a wholesale acquisition cost rise of 50% or more over the past five years or by 15% or more over the past twelve months, creating a substantial public interest in understanding the development of the drugs' pricing. The board will provide the list of identified drugs and the percentage of cost increase to the attorney general's office, which will require manufacturers to justify these price increases by submitting relevant information and documentation.

Additionally, the bill stipulates that the department of health must use the same dispensing fee for 340B prescription drugs as it does for non-340B drugs under the Medicaid program. The department is also authorized to modify the dispensing fee or reimbursement formula for federally qualified health centers and Title X family planning clinics for dispensing 340B prescription drugs to Medicaid beneficiaries.

The bill establishes an advisory commission on out-of-pocket prescription drug costs, which will develop options for health benefit plans offered on the Rhode Island health benefit exchange for the 2027 plan year. This commission will include representatives from the Rhode Island health benefits exchange, commercial health insurers, the insurance commissioner, consumer advocacy groups, and other stakeholders. The commission is tasked with meeting at least six times to develop recommendations, which will be reported to the governor and the general assembly.

The act is set to take effect upon passage.