This bill aims to protect Rhode Island residents from excessive and unconscionable prices for prescription drugs. It proposes the addition of a new chapter to the General Laws of Rhode Island, titled "Prescription Drug Cost Protection." The bill prohibits purchasers from purchasing or seeking reimbursement for a referenced drug at a cost higher than the maximum fair price. It also requires entities that sell drugs in the state to maintain a registered agent and office within the state. Any savings generated as a result of the requirements in the bill must be used to reduce costs to consumers, with a focus on promoting health equity. Violations of this chapter would be subject to a fine of $1,000, and the attorney general would be authorized to enforce the provisions of the statute.

The bill also requires participating ERISA plans to submit a report to the insurance commissioner describing the savings achieved for each referenced drug and how those savings were used to promote health equity. The insurance commissioner would be responsible for implementing rules for calculating savings and reporting requirements. Penalties would be assessed for violations, including manufacturers or distributors withdrawing referenced drugs from sale or distribution to avoid rate limitations, refusing to negotiate in good faith with payors or sellers of prescription drugs, and more. The bill includes a severability clause.