Following on the heels of several other states, including California, Nevada and Oregon, that have enacted drug pricing transparency bills, Connecticut and Vermont are the latest states to join the fray.

In Connecticut, Public Act No. 18-41 requires pharmacy benefits managers (PBM), health carriers, and drug manufacturers to report certain information regarding outpatient prescription drugs, including information regarding rebates and certain drug price increases. Specifically, with regard to manufacturers, the law requires certain manufacturers that have a pipeline drug that may have a “significant impact on state expenditures for outpatient prescription drugs” to provide information regarding (i) the primary disease, condition or therapeutic area studied in connection with such drug; (ii) each route of administration studied for the drug; (iii) clinical trial comparators; (iv) estimated year of market entry for such drug; (v) whether the FDA has designated the drug as an orphan drug, fast track product, or breakthrough therapy; and (vi) whether the FDA has designated the drug for priority review.

Additionally, manufacturers of certain drugs that are included on a list prepared by the Office of Health Strategy that wholesale acquisition cost (WAC) of the drug (less all rebates paid to the state for such drug during the immediately preceding calendar year) increased by at least (i) 20% during the immediately preceding calendar year, or (ii) 50% during the immediately preceding three calendar years, must report certain information regarding (i) all factors that increased the WAC of the drug; and (ii) aggregate, company-level research & development (R&D) costs and other capital expenditures required by the Office of Health Strategy.

Vermont Act 193 requires certain disclosure requirements for health plans. Vermont Act 193 also strengthens the existing drug transparency law in Vermont, including requiring manufacturers to annually report costs for certain drugs and to provide notice before introducing a high-cost prescription drug to the market.

These two bills demonstrate that states are demanding additional transparency related to drug pricing. It is unlikely that this trend will end soon as additional states introduce similar bills. We will continue to watch these laws and update this blog with developments.

Posted by Cooley