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Californians will get more information on drug prices under new law

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Gov. Jerry Brown of California on Monday signed into law a measure to increase disclosure on prescription drug prices. The law will require drugmakers to provide notice to health plans and other purchasers 60 days in advance of a planned price hike if the increase exceeds certain thresholds.

Gov. Jerry Brown of California on Monday signed into law a measure to increase disclosure on prescription drug prices. The law will require drugmakers to provide notice to health plans and other purchasers 60 days in advance of a planned price hike if the increase exceeds certain thresholds. The law also requires require health plans to submit an annual report to the state that details the most frequently prescribed drugs, those that are most expensive and those that have been subject to the greatest year-to-year price increase. "The essence of this bill is pretty simple," Brown said at a Capitol signing ceremony. "Californians have a right to know why their medical costs are out of control, especially when pharmaceutical profits are soaring." The disclosure, supporters say, would help shed light on how prescription drugs are contributing to overall health care costs. Pharmaceutical companies opposed the measure, arguing the information would paint an inaccurate picture of drug spending, since the disclosure centers on full sticker cost set by manufacturers. Purchasers rarely pay the full list price, either through negotiated discounts or through use of consumer rebates or coupons.

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http://beta.latimes.com/politics/la-pol-ca-prescription-drug-price-disclosure-20171009-story.html

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