Some bad actors within the industry and a host of media coverage has created an environment where drug pricing is seen as a major healthcare issue. While rumors abound on what might happen at the federal level, state legislatures are taking matters into their own hands by passing bills that call for transparency in drug pricing.
The premise for these laws is that by mandating that pharmaceutical manufacturers disclose drug-pricing information (either at launch or whenever increases occur), states will be better able to manage healthcare costs and consumers will have lower out-of-pocket costs for drugs.
It should be noted that states enacting mandatory disclosure of manufacturers' proprietary data are likely to also involve insurers and pharmacy benefit managers (PBMs), especially regarding pricing negotiations. While the scope and impact of these laws can vary substantially, transparency bills have some common characteristics, we examine these in our newest issue brief.