Bill Text: CA SB852 | 2019-2020 | Regular Session | Amended
Bill Title: Health care: prescription drugs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2020-09-28 - Chaptered by Secretary of State. Chapter 207, Statutes of 2020. [SB852 Detail]
Download: California-2019-SB852-Amended.html
Amended
IN
Senate
March 16, 2020 |
Introduced by Senator Pan |
January 13, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law requires a manufacturer of a prescription drug with a wholesale acquisition cost of more than $40 for a course of therapy that is purchased or reimbursed by specified purchasers, including state agencies, health care service plans, health insurers, and pharmacy benefit managers, to notify the purchaser of an increase in
the wholesale acquisition cost of a prescription drug if that increase exceeds 16 percent, as specified.
This bill would state the intent of the Legislature to introduce legislation to require the State of California to manufacture generic prescription drugs for the purposes of controlling prescription drug costs. The bill would also make related findings and declarations.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 10 (commencing with Section 127690) is added to Part 2 of Division 107 of the Health and Safety Code, to read:CHAPTER 10. California Affordable Drug Manufacturing Act of 2020
127690.
This chapter may be cited as the California Affordable Drug Manufacturing Act of 2020.127691.
(a) The Office of Drug Contracting and Manufacturing is hereby established within the California Health and Human Services Agency to increase competition, lower prices, and address shortages in the market for generic prescription drugs, to reduce the cost of prescription drugs for public and private purchasers, taxpayers, and consumers, and to increase patient access to affordable drugs.127692.
(a) On or before January 1, 2022, the office shall contract or partner with at least one drug company or generic drug manufacturer that is licensed by the United States Food and Drug Administration to produce or distribute generic prescription drugs, with the intent that these drugs be made widely available to public and private purchasers, providers and suppliers as defined in subdivision (b) of Section 1367.50, and pharmacies as defined in Section 4037 of the Business and Professions Code.127693.
(a) On or before January 1, 2022, the office shall prepare and submit a report to the Legislature that assesses the feasibility of the office to do all of the following:127694.
For each generic prescription drug that the office determines shall be directly manufactured pursuant to this chapter, the office shall do both of the following:127695.
(a) On or before January 1, 2023, the office shall prepare and submit a report to the Legislature that includes at least all of the following:The Legislature finds and declares both of the following:
(a)The State of California has a substantial interest in the cost of prescription drugs. California is a major purchaser of prescription drugs 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 entities acting on behalf of state purchasers.
(b)According to an Office of Statewide Health Planning and Development report on prescription drug price increases, generic drugs had the largest median price increase from 2017 through the beginning of 2019, rising 37.6 percent, compared to a 25.8-percent median price increase for all drugs over the same
three-year period.
It is the intent of the Legislature to introduce legislation to require the State of California to manufacture generic prescription drugs for the purposes of controlling prescription drug costs.