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 those with a wholesale acquisition cost rise of 50% or more over the past five years or 15% or more over the past twelve months. The attorney general will then require manufacturers of these drugs to justify the price increases by providing 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 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 also establishes an advisory commission to explore options for modifying out-of-pocket prescription drug limits for health benefit plans offered on the Rhode Island health benefit exchange for the 2027 plan year. This commission will include representatives from various health organizations and will meet at least six times to develop recommendations.

Furthermore, the department of health is tasked with reporting on cost-sharing trends and the impact of these changes on consumers and the healthcare system. The attorney general is required to provide an annual report to the general assembly based on the information received from manufacturers. The act is set to take effect upon passage.