California Governor Signs Drug-Pricing Transparency Law

Source: Reuters

(Reuters) - California Governor Jerry Brown on Monday signed state legislation requiring drug companies to report certain price hikes for prescription medicines in a move that could set a model for other states could follow.

The law, which aims to provide more transparency around pharmaceutical and biotech company pricing methods for their medicines, requires drug manufacturers to give a 60-day notice if prices are raised more than 16 percent over a two-year period. The law also requires health plans and insurers to file annual reports outlining how drug costs affect healthcare premiums in California.

"Californians have a right to know why their medication costs are out of control, especially when pharmaceutical profits are soaring," Brown said in a statement on his website announcing the new legislation.

The bill has been vehemently opposed by drugmakers, who argue that wholesale price increases to not reflect the actual prices paid for medicines after discounts and rebates.

Read more: https://www.scientificamerican.com/article/california-governor-signs-drug-pricing-transparency-law/

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law also requires health plans and insurers to file annual reports outlining how drug costs affect health care premiums in California.

This should be a Federal Law. Price gouging by Drug corporations(hand in hand with insurance corporations & their Republican friends) are one of the main reasons insurance premiums are to high.