The “Prescription Drug Price Transparency Act” law went into effect on July 1st. The bill was put in place to provide greater clarity in healthcare pricing. It requires prescription drug makers to report pricing increase information for existing drugs, new drugs and newly acquired drugs.
“This new law delivers benefits for every Minnesotan, which is why I was a proponent of this bill in the Senate,” said Senator Torrey Westrom (R-Elbow Lake). “Consumers have been asking for pharmaceutical accountability for years – this bill will keep prices from soaring and requires a justifiable explanation for unexpected increases.”
In addition to disclosing the cost of manufacturing, marketing and distributing those drugs, drug makers will report sales revenue, net profits, financial assistance through patient prescription assistance programs.
Finally, for each prescription drug whose price was $100 or greater for a 30-day supply, or for a course of treatment lasting less than 30 days, manufacturers must report the specified drug pricing information for: (1) brand name drugs where the price increases by 10 percent or more within the last year or an increase of at least 16 percent over the previous two years; and (2) generic drugs where there is a price increase of at least 50 percent over the previous 12-month period.