HB18-1009 Summary: Diabetes Drug Pricing Transparency Act of 2018

• Creates the "Diabetes Drug Pricing Transparency Act of 2018" requiring the state board of health to compile annual lists of essential diabetes prescription insulin drugs and identify those with price increases exceeding medical care inflation or twice the two-year inflation average.

• Drug manufacturers must submit annual reports by May 1 detailing production costs, administrative expenditures, annual profits, wholesale acquisition costs, price increase histories with explanations, rebates, and research and development costs for listed drugs.

• Pharmacy benefit managers and insurers must report annually on rebates received and retained, administrative fees, negotiated rebates by population type (Medicare, Medicaid, private insurance), and payments to Colorado pharmacies for dispensing listed drugs.

• Nonprofit organizations advocating for diabetes patients or funding diabetes research that receive contributions from diabetes drug manufacturers must annually report the amounts and percentages of income received from each manufacturer.

• State board must analyze submitted reports and publish findings by August 1 each year on the department's website, including conclusions about specific reasons for price increases; appropriates $287,602 for 2018-19 implementation.