The state Senate on Wednesday took action to shine a light on skyrocketing prices for many prescription drugs, approving a bill that requires drug manufacturers to provide 60-days notice to purchasers if the cost is going to be increased by more than 10%.
The bill by Sen. Ed Hernández (D-West Covina) said his bill would also require drugmakers to give notice when a new drug will cost $10,000 or more annually or during a course of treatment.
He cited examples including an anti-hepatitis drug that cost $84,000 for a course of treatment. He said the price of generic antibiotics went up 2,000% in one year. The bill follows other measures that promoted cost transparency in healthcare.
“Shining a light for the first time is having the greatest impact on our healthcare system,” Hernández told his collegues. “Members, this is not price control. This is transparency.”
The bill was approved on a vote of 24-8 with many Republicans opposed.
Sen. Jeff Stone (R-Murrieta) said some expensive drugs have dramatically improved treatment.
“Reduced profits will lead to less innovation with fewer life-saving remedies,” he said.