(Reuters) – California Governor Jerry Brown on Monday signed condition legislation requiring drug companies to report certain cost hikes for prescription medicines inside a move that may set one for other states could follow.
What the law states, which aims to supply more transparency around pharmaceutical and biotech company prices means of their medicines, requires drug manufacturers to provide a 60-day notice if costs are elevated greater than 16 percent more than a two-year period. What the law states also requires health plans and insurers to file for annual reports outlining how drug costs affect healthcare premiums in California.
“Californians possess a to know why their medication pricing is unmanageable, particularly when pharmaceutical earnings are soaring,” Brown stated inside a statement on his website announcing the brand new legislation.
The balance continues to be emphatically opposed by drugmakers, who reason that wholesale cost increases not to reflect the particular prices compensated for medicines after discounts and rebates.
Biotechnology Innovation Organization, the key industry trade group, issued an announcement condemning the balance and quarrelling that it wouldn’t serve its intended purpose.
“This law will neither provide significant information to patients nor lower prescription medication costs,” the audience stated, adding the law “seriously jeopardizes the way forward for California’s leadership within this innovative industry.”
California hosts countless biotechnology companies of any size.