The proposed bill, SB 468, aims to protect Rhode Island residents from excessive prices for prescription drugs by establishing a new chapter titled "Prescription Drug Cost Protection." This legislation defines key terms, including "maximum fair price," which is the highest price for a referenced drug as determined by the Secretary of the U.S. Department of Health and Human Services.

The bill prohibits any purchaser, including state entities, participating ERISA plans, and health plans, from buying referenced drugs at prices exceeding the maximum fair price. Participating ERISA plans may opt into these provisions by notifying the insurance commissioner annually. Any savings generated from compliance with this chapter must be used to reduce costs for consumers, with a focus on promoting health equity and addressing disparities in healthcare access.

The bill also establishes penalties for manufacturers who withdraw referenced drugs from sale to avoid compliance or fail to negotiate in good faith regarding pricing. Each violation of the chapter is subject to a fine of $1,000, and the insurance commissioner is authorized to enforce these provisions. The legislation is designed to ensure that savings are directed towards reducing costs for consumers and promoting greater health equity.