This bill amends the Rhode Island Health Care Reform Act of 2004 to include new definitions and penalties related to prescription drugs. It adds definitions for various terms, including "Accountability standards," "Consumer Price Index," and "Wholesale acquisition cost." The bill also adds a new section that imposes a penalty on manufacturers of identified drugs. The penalty is calculated as 80% of the difference between the revenue generated by sales of the identified drugs and the revenue that would have been generated if the manufacturer had maintained the wholesale acquisition cost from the previous year, adjusted for inflation using the Consumer Price Index. The penalty is assessed on manufacturers with at least $250,000 in total annual sales within the state.

This bill aims to regulate price increases for prescription drugs. It states that any unsupported price increase of a prescription drug would be subject to a penalty equal to 80% of the difference between the revenue generated by the sales of the prescription drug and the revenue that would have been generated if the manufacturer had maintained the wholesale acquisition cost from the previous calendar year, adjusted for inflation. The bill also prohibits manufacturers from withdrawing a prescription drug from sale or distribution for the sole purpose of avoiding the penalty of a price increase.

Statutes affected:
7042: 42-14.5-2.1