Bill Text: NY S08587 | 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: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-16 - REFERRED TO HEALTH [S08587 Detail]

Download: New_York-2023-S08587-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8587

                    IN SENATE

                                    February 16, 2024
                                       ___________

        Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
          and when printed to be committed 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
    24    (ii)  a  list of the ten prescription drugs on which the state expends
    25  the most money and for which the cost to the state, net of  rebates  and
    26  other price concessions, has increased by fifty percent or more over the
    27  past  five  years or by ten percent or more during the previous calendar

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06654-01-3
        S. 8587                             2

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