Bill Text: NY A02861 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires the commissioner of health to include in annual reports information regarding the cost and increase in cost of the ten prescription drugs on which the state expends the most money and which have had certain costs increased by fifty percent or more over the past five years or by ten percent or more during the previous calendar year.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Introduced) 2023-07-17 - enacting clause stricken [A02861 Detail]

Download: New_York-2023-A02861-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2861

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 27, 2023
                                       ___________

        Introduced  by  M. of A. D. ROSENTHAL, COLTON, DICKENS, SEAWRIGHT, CRUZ,
          COOK, SIMON, McDONOUGH, HUNTER, MAGNARELLI -- read once  and  referred
          to the Committee on Health

        AN  ACT  to  amend  the  public health law, in relation to requiring the
          commissioner of  health  to  include  in  annual  reports  information
          regarding the cost and increase in cost of certain prescription drugs

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1 of section 277 of the public health  law,  as
     2  amended  by  section  18 of part A of chapter 56 of the laws of 2013, is
     3  amended to read as follows:
     4    1. The commissioner, in consultation with the drug utilization  review
     5  board,  shall  undertake  periodic  reviews,  at  least annually, of the
     6  preferred drug program which shall include consideration of:
     7    (a) the volume of prior authorizations being handled,  including  data
     8  on  the  number  and characteristics of prior authorization requests for
     9  particular prescription drugs;
    10    (b) the quality of the program's responsiveness, including the quality
    11  of the administrator's responsiveness;
    12    (c) complaints received from patients and providers;
    13    (d) (i) a list of the  ten  prescription  drugs  on  which  the  state
    14  expends  the most money and for which the wholesale acquisition cost has
    15  increased by fifty percent or more over the past five years  or  by  ten
    16  percent  or  more  during  the  previous calendar year. The commissioner
    17  shall: include the percentage of the wholesale acquisition cost increase
    18  for each drug on the list; rank the drugs on the list  from  those  with
    19  the  largest  increase  in  wholesale acquisition cost to those with the
    20  smallest increase; indicate whether each drug was included on  the  list
    21  based on its cost increase over the past five years or during the previ-
    22  ous  calendar  year,  or both; and provide the state's total expenditure
    23  for each drug on the list during the most recent calendar year; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06654-01-3
        A. 2861                             2

     1    (ii) a list of the ten prescription drugs on which the  state  expends
     2  the  most  money and for which the cost to the state, net of rebates and
     3  other price concessions, has increased by fifty percent or more over the
     4  past five years or by ten percent or more during the  previous  calendar
     5  year.  The commissioner shall rank the drugs on the list from those with
     6  the greatest increase in net cost to those with  the  smallest  increase
     7  and  indicate  whether  each  drug was included on the list based on its
     8  cost increase over the past five years or during the  previous  calendar
     9  year, or both; and
    10    (iii)  a manufacturer of a prescription drug that appears on a list as
    11  described in subparagraph (i) or (ii) of this paragraph shall submit  to
    12  the  commissioner  a report that explains: (A) all material factors that
    13  have contributed to the wholesale acquisition  cost  increase  for  such
    14  drug  including  but  not  limited to materials and manufacturing costs,
    15  spending on research and development costs, spending  on  marketing  and
    16  advertising,  and  spending  on  patient  assistance  programs;  (B) the
    17  percentage of the total wholesale acquisition cost increase attributable
    18  to each factor; (C) an  explanation  of  the  role  of  each  factor  in
    19  contributing  to  the wholesale acquisition cost increase; (D) the total
    20  revenue and the net profit of  the  manufacturer  for  the  most  recent
    21  calendar  year;  and  (E)  any  additional  information the manufacturer
    22  chooses to provide related to drug pricing decisions;
    23    (e) the savings attributable to the state, and to each county and  the
    24  city of New York, due to the provisions of this article;
    25    [(e)] (f) the aggregate amount of supplemental rebates received in the
    26  previous  fiscal  year and in the current fiscal year, to date; and such
    27  amounts are to be broken out by fiscal year and by month;
    28    [(f)] (g) the education and outreach program  established  by  section
    29  two hundred seventy-six of this [article] title.
    30    § 2. This act shall take effect immediately.