Insurance and Real Estate Committee
JOINT FAVORABLE REPORT
Bill No.: HB-5366
Title: AN ACT CONCERNING THE COST OF PRESCRIPTION DRUGS.
Vote Date: 3/10/2020
Vote Action: Joint Favorable Substitute
PH Date: 3/3/2020
File No.:
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Sen. Saud Anwar, 3rd Dist.
REASONS FOR BILL:
Raised Bill 5366
This bill was envisioned to help reduce the rising cost of healthcare and prescription drugs in
Connecticut that is affecting every one of its citizens. Without measures like this it is believed the price
of prescription drugs will keep rising out of control. This bill intends to limit the rising costs by
implementing price caps on Out-Of-pocket costs and by introducing Canadian drug reimportation.
Proposed Substitute Language 5366
The bill has the same purpose as above with much of the same language with new definitions and
former definitions being clarified. In addition, section 1 is changed to include that no new coinsurance,
copayments, and deductibles for covered prescription drugs that exceed two hundred and fifty dollars
per month. Section 2 is changed to require the Insurance Commissioner to submit a report in
accordance with provisions in section 11-4a of the State Statutes on the effect and impact of capping
the annual percentage increase in the wholesale of prescription drugs.
RESPONSE FROM ADMINISTRATION/AGENCY:
Kevin Lembo State Comptroller supports the bill as many of Connecticuts citizens are worried
about how they will afford their prescriptions as prices continue to rise. Conneticut residents are some
of the wealthiest in the United States yet many residents sacrifice their health as they cannot afford
their prescriptions drugs. This bill will help reduce these costs by establishing Canadian drug
reimportation, a Critical Drug Shortage Revie Board and by capping out-of-pocket spending.
Martin Looney, President Pro Tempore, Connecticut General Assembly supports the bill as life-
saving prescription drug pricing is out of control. Price gouging affects everyone in Connecticut and
are addressed in this bill by its price capping of Out-Of-Pocket costs and by the implementation of
Canadian Drug Reimportation.
NATURE AND SOURCES OF SUPPORT:
AARP Connecticut supports the bill as growing prescription drug costs are a significant concern for
those on fixed incomes. They believe that HB 5366 will help cap out-of-pocket expenses and reduce
costs with safe Canadian drug reimportation. The requirement of disclosure of pay-for-delay
agreements will help further reduce costs by allowing generic drugs to enter the market sooner and
require health carriers to reduce the cost of brand name drugs that enter into such agreements.
Michael Aronow, President, MD, Connecticut Orthopedic Society supports the bill as it is pro-
consumer and patient oriented that will help reduce prescription drug costs. They further state that by
supporting the bill they will help many people keep receiving their Non-surgical treatments without the
usage of opioids.
Connecticut Society of Eye Physicians supports the bill as it will help reduce the rising cost of
prescription drugs in 5 significant ways. By capping out of pocket spending, whole sale drug inflation,
allowing for Canadian drug reimportation, enforces transparency in generic drug blockage, and creates
a Critical Drug Shortage Review Board.
Winston Heimer, Executive Vice President, Connecticut Alliance for Retired Americans supports
the bill as residents of Connecticut show a great concern in the rising prescription drug prices. They
believe that this bill will help address that issue and do something about it.
Cheryl A. Duade, East Granby, CT supports the bill as they are an insulin dependent type 2 diabetic
with MS. They believe this bill will help reduce the costs of their life saving medications.
Kathleen Flaherty, Executive Director, Connecticut Legal Rights Project supports the bill as it
will address the problem of rising healthcare costs in Connecticut. They believe that once a person has
signed a contract for coverage the insurer should not be able to unilaterally change the terms of
coverage during the plan year.
Ann Pratt, Director, CT Citizen Action Group supports the bill as not everyone is on fully covered
plans. Everyone should have the same opportunity to focus on their treatment and getting better
without having to worry about the significant cost of their treatments.
Novlette Williams, West Hartford, CT supports the bill as they have congestive heart failure and
despite having insurance could not afford their medication. They were only able to obtain the
medication through the usage of coupons their Doctor was able to provide to them and then by
reaching out to congressmen Larsons office. He worries about people who are less fortunate than him
who also need to take lifesaving medication on a consistent basis.
Universal Healthcare Foundation of Connecticut supports the bill as it contains consumer protection
plans and ways to mitigate the rising prescription drug costs in Connecticut. This can be done with
well-designed price caps that have in other states reduced the prices of drugs and done so without
raising premiums.
NATURE AND SOURCES OF OPPOSITION:
Christina Adams, Chief Pharmacy Officer, Canadian Society of Hospital Pharmacists Opposes
the bill as Canada lacks the production capabilities to supply the population of the United States.
Additionally, Canada does not have a Track and Trace system and would not be able to determine
where the Canadian drugs originated from.
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Connecticut Association of Health Plans opposes the bill as insurance solutions to pricing problems
will not work as intended. Instead they argue it will drive people out of the fully insured market and
into self-insured as premiums will rise significantly as a result.
Healthcare Distribution Alliance opposes Section 2 of the bill. They believe section 2 does not
consider how the price of pharmaceuticals is determined and hold supply chain entities responsible
when they have limited to no influence over the pricing. The goal of Section 2 is unclear and requests
its removal from the bill.
Biotechnology Innovation Organization opposes the bill as Canadian reimportation of prescription
drugs will not reduce the cost as much as thought, may have unintended consequences to consumer
safety and go against The Drug Supply Chain Act. Additionally, while the state of CT does have the
authority to regulate commercial conduct within its borders it does not have the same authority to
criminalize conduct that occurs on the national level.
The Association for Accessible Medicines opposes the bill and has particular concerns about
Canadian Drug Reimportation. This will not lower prescription drug costs and will instead expose the
Citizens of Connecticut to higher safety risks.
Carrie Rand-Anastasiades, Executive Director, Connecticut Association of Community
Pharmacies opposes the bill and has particular concerns on section 2 of the bill. They state that as
pharmacists their contracts are determined by the State or Federal government and that they do not
have the authority to change what a patient is charged. They also believe that the Canadians lack the
supply necessary for the American population and that the bill will invite black market sellers with
counterfeit medications.
Shabbir Imber Safar, Executive Director, The partnership for Safe Medicines opposes the bill
especially in regards to Canadian Drug Reimportation. They believe that this will invite counterfeit
drugs into circulation and argues that many other states with similar programs have had issues
enforcing safety standards.
PhRMA opposes the bill as it does not remedy insurance benefit design issues and incorrectly solely
blames the drug manufacturers. They argue it does not take into account the influence stakeholders
have in determine prescription drug pricing and places unconstitutional price controls. Specifically
referencing BIO v. District of Columbia where the court overturned a District of Columbia law
imposing price controls on branded drugs.
Connecticut Pharmacists Association opposes the bill as it would undermine the safeguards in place
to protect consumers. The reimportation of Canadian drugs will jeopardize consumer safety and
undermine the Drug Supply Chain Act
Reported by: Lawrence Sanchez Date: 04/28/2020
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