[PHOTO CREDIT: ccpix.com]

SB 17 would require drug makers to justify and give 60 days’ notice of price increases

AARP is supporting legislation that holds big drug companies accountable to Californians. SB 17 (Hernandez), will come up for a vote on the Assembly floor before the end of August.

If enacted, SB 17 would require drug makers to give 60 days’ notice to California state purchasers (CalPERS, DHCS, CDCR, DGS), health plans, and insurers before raising prices on most prescription drugs.

SB 17 also requires drug makers to report additional information to the Office of Statewide Health Planning and Development (OSHPD), including justification for price increase, marketing budgets, previous price increases, sales volumes, and relative efficacy and for this information to be made available to the public

AARP research shows that in 2015, retail prices for 268 brand name prescription drugs widely used by Medicare beneficiaries increased by an average of 15.5 percent, when the general rate of inflation rate was only 0.1 percent over the same period.

AARP supports TRANSPARENCY in prescription drug pricing. At a time when more and more high-cost drugs are entering the market, consumers have a right to know important information about how drug prices are set. This will empower consumers by allowing them to gain a better understanding of the pharmaceutical industry’s pricing methods.

Tell your Assembly member to support drug pricing transparency by voting YES on SB 17, the Drug Price Transparency Bill. To reach your representative, call this toll-free number: 1-844-266-7967

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