New Senate Bill Would Require Drug Manufacturers to Alert Purchasers of Price Hikes

On June 10, the U.S. Senate approved a bill that requires drug manufacturers to provide 60-day notice of any price increases of more than 10 percent. The bill also requires that drugmakers give notice when a new drug will cost $10,000 or more annually (or during the course of treatment).

“Shining a light for the first time is having the greatest impact on our health-care system,” said Senator Ed Hernández, who sponsored the bill. “This is not price control. This is transparency.”

Opponents of the bill argued that reduced profits could lead to less innovation in therapy.

Source: The Los Angeles Times, June 10, 2016.

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