— from Rick Manugian, Governor’s Office —
Consumers could know the actual costs it takes to produce the prescription medicines they need, under legislation introduced today by Sen. Kevin Ranker, D-Orcas Island.
“People who rely on prescription drugs for their health are finding them increasingly expensive to purchase, even with a copay,” Ranker said. “Consumers should have the confidence that the manufacturer is charging a fair price and not an inflated price.”
Ranker’s Senate Bill 6471 would require pharmaceutical companies to make their pricing as transparent as the pricing in other sectors of the health care industry by reporting a breakdown of those costs to the state Health Care Authority.
The breakdown would include the separate costs to both the manufacturer and any predecessor or any related entity for production; R&D; clinical trial or other regulatory costs; materials manufacturing and administration; acquisition; patents; and marketing and advertising. The breakdown would also include the annual history of average wholesale price and acquisition cost increases; the total profit attributable to the drug; and the total financial assistance in dollars and as a percentage of company profits.
This information would be audited by a fully independent, third-party auditor prior to filing and must be filed annually.
“At the end of the day, there’s not much that’s more important than a person’s health, and the cost of prescription drugs can push a household to the brink in some cases,” Ranker said. “No one should have to choose between getting the medication they need and making risky choices like rationing their meds or going into debt to afford their medication.”
