State Solutions

Finding state solutions…

States can lead the way in solving the drug pricing crisis. Candidates and legislators at the state level should commit to meaningful reforms that include:

• End Price Gouging: State legislators should support legislation that allows the state to review drug prices and allows for state action when price increases are excessive and place an undue burden on patients and taxpayers.

  • Example legislation: Maryland 2017 HB 631, New York Drug Utilization Review Board

• Increase Transparency and Notification of Price Spikes: Support legislation to require drug manufacturers report price increases of 10% or more annually. Pharmaceutical manufacturers should be required to report to the state on any drug price increases of 10% or more in one year, and to provide the underlying reasons for such increases. The findings should be made public by the state. Justification for the prices increases should include:

  • Research and development costs

  • Cost of production

  • Marketing and advertising costs

  • Yearly profit on the drug

  • Example legislation: California 2017 SB 17, Oregon 2018 HB 4009

• Hold Drug Middlemen Accountable: State legislators should support legislation that prohibits anti-consumer practice by PBMs. Such legislation includes:  

  • End to gag clauses that prevent pharmacists from notifying consumers about less expensive options.

  • Mandatory reporting of kickbacks between drug corporations and middlemen that might drive up prices.

  • Prohibition of clawbacks — tactics used by PBMs to charge pharmacists more for prescription drugs after the pharmacist already sold to them to patients. They make it hard for pharmacists to stock or guarantee ready access to medications for patients.

  • Mandatory reporting of the real prices paid by drug middlemen, insurance companies, and patients to ensure patients are getting a fair shake.

    • Example legislation: Nevada 2017 SB 539, Ohio 2018 HB 479