Awaiting Governor’s signature, VT bill requires drug companies to justify prices
A Vermont bill that would make drug companies justify their prices has passed both houses and awaits the Governor’s signature. S.216 requires drug companies to submit detailed information explaining price increases for the most common drugs with sharply rising prices. The information would be reported publicly online. It is unclear what the state will do with the information, but the bill states, “In order to contain prescription drug costs, it is essential to understand the drivers of those costs, as transparency is typically the first step toward cost containment.” Similar bills have been considered in MA, CA, VA, OR and NC, but Vermont’s bill is the closest to becoming law. The Governor plans to make a decision on the bill by June 9th.
CSG/ERC’s Health Policy Committee will explore state/provincial options to control drug prices at the Annual Meeting this August in Quebec City. Click here for more information and to register