The proposed bill establishes a new chapter, "Pharmaceutical Cost Transparency," within Title 5 of the General Laws. It directs the state board of pharmacy, in collaboration with the department of health, to annually identify up to fifteen prescription drugs that have experienced significant cost increases. Specifically, this includes drugs 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 board will provide this list to the attorney general's office, which will require the manufacturers of these drugs to justify the price increases by submitting relevant information and documentation.

The bill specifies that the information submitted to the attorney general is exempt from public inspection and copying, ensuring confidentiality regarding individual drugs and manufacturers. Additionally, the department of health is directed to use the same dispensing fee for 340B prescription drugs as it uses for non-340B prescription drugs under the Medicaid program.

Furthermore, the bill establishes an advisory commission on out-of-pocket prescription drug costs, which will study these costs and make recommendations for all qualified health benefit plans to be offered on the Rhode Island health benefit exchange for the 2027 plan year. The commission will explore options for plans with higher out-of-pocket limits and those with limits at or below current law. The commission will include representatives from various stakeholders, including health insurers, the insurance commissioner, and consumer advocates.

The department of health is also required to report on the cost-share increase trends for health benefit plans, the impact of 340B drug pricing, and recommendations for modifications to out-of-pocket prescription drug cost limits. The act is set to take effect upon passage.