Bill Text: CA SB17 | 2017-2018 | Regular Session | Amended
Bill Title: Health care: prescription drug costs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2017-10-09 - Chaptered by Secretary of State. Chapter 603, Statutes of 2017. [SB17 Detail]
Download: California-2017-SB17-Amended.html
Amended
IN
Assembly
July 20, 2017 |
Amended
IN
Assembly
July 05, 2017 |
Amended
IN
Senate
April 25, 2017 |
Amended
IN
Senate
March 14, 2017 |
Senate Bill | No. 17 |
Introduced by Senator Hernandez (Principal coauthor: Assembly Member Chiu) |
December 05, 2016 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1367.243 is added to the Health and Safety Code, to read:1367.243.
(a) (1) A health care service plan that reports rate information pursuant to Section 1385.03 or 1385.045 shall report the information described in paragraph (2) to the department no later than October 1 of each year, beginning October 1, 2018.SEC. 2.
Section 1385.045 of the Health and Safety Code is amended to read:1385.045.
(a) For large group health care service plan contracts, each health plan shall file with the department the weighted average rate increase for all large group benefit designs during the 12-month period ending January 1 of the following calendar year. The average shall be weighted by the number of enrollees in each large group benefit design in the plan’s large group market and adjusted to the most commonly sold large group benefit design by enrollment during the 12-month period. For the purposes of this section, the large group benefit design includes, but is not limited to, benefits such as basic health care services and prescription drugs. The large group benefit design shall not include cost sharing, including, but not limited to, deductibles, copays, and coinsurance.SEC. 3.
Chapter 9 (commencing with Section 127675) is added to Part 2 of Division 107 of the Health and Safety Code, to read:CHAPTER 9. Prescription Drug Pricing for Purchasers
127675.
(a) This chapter shall apply to a manufacturer of a prescription drug that is purchased or reimbursed by any of the following:127676.
(a) The Legislature finds and declares that the State of California has a substantial public interest in the price and cost of prescription drugs. California is a major purchaser through the Public Employees’ Retirement System, the State Department of Health Care Services, the Department of General Services, the Department of Corrections and Rehabilitation, and other entities acting on behalf of a state purchaser. California also provides major tax expenditures through the tax exclusion of employer sponsored coverage and tax deductibility of coverage purchased by individuals, as well as tax deductibility of excess health care costs for individuals and families.127677.
(a) A manufacturer of a prescription drug with a wholesale acquisition cost of more than forty dollars ($40)(a)At the time that the increase in wholesale acquisition cost described in subdivision (a) of Section 127677 takes effect, a manufacturer shall report all of the following information to the office:
127679.
(a) On a quarterly basis at a time prescribed by the office, a manufacturer shall report to the office all of the following information for each drug for which an increase in wholesale acquisition cost is described in Section 127677:
(7)Documentation of increased clinical efficacy of the drug, if any. The manufacturer shall state if the drug subject to the notice does not exceed the clinical efficacy of existing treatments in the same therapeutic class or if it is an entirely different therapeutic class.
(b)
127681.
(a) A manufacturer of a prescription drug shall notify the office in writing if it is introducing a new prescription drug to market at a wholesale acquisition cost that exceeds the threshold set for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)). The notice shall be provided in writing within three days after(3)Any documentation showing increased efficacy of the drug compared to
existing treatments. The manufacturer shall state if there are no changes or improvements made to the clinical efficacy of the drug subject to the notice.
(4)
(5)
(6)
(c)