On Friday, a Maryland bill
to control generic drug prices passed into law without the Governor’s
signature. Maryland’s Attorney General Frosh championed this
first-in-the-nation anti-gouging bill. The
issue was raised in response to extreme price increases in older drugs such
as EpiPen, naloxone, and Daraprim. The bill requires Maryland’s Medicaid program
to notify the Attorney General when an “essential” generic drug’s price rises
by 50% or more over two years. The Attorney General may then require records
and documents related to the price increase, seek penalties in court, or ask
the court to compel the company to offer the drug to the state at the original
price. In his
letter, Governor Hogan applauded the bill’s “laudable goal, to combat
price-gouging of consumers for life-saving drugs” but raised legal and
constitutional concerns. He also noted that the law only applies to generic and
off-patent medications, missing important and costly treatments. He urged the
legislature to return to the issue next session. States
across the US are considering legislation to control drug costs.
Last Wednesday, Connecticut’s Senate unanimously
passed SB-445, An Act Concerning Fairness in Pharmacy and Pharmacy Benefits
Manager Contracts on the Consent Calendar. The bill prohibits “gag clauses” in
contracts with pharmacists and allows them to disclose prescription costs, the
reimbursement to the pharmacy, the prescription’s efficacy, and any
alternative, less expensive medications. The bill also prohibits charging
consumers more than the drug costs. Right after the bill passed, Governor
Malloy sent a letter to Senate leaders criticizing the bill and an
“antagonistic approach” to the insurance industry. Senate
leaders are confident the bill will pass the House and, if necessary,
override a veto by the Governor.
