HI HB267

Requires prescription drug manufacturers to notify prescription drug benefit plans and pharmacy benefit managers at least 60 days before implementing price increases of 16% or more over any two-year period for drugs with wholesale acquisition costs exceeding $40 per course of therapy.

Notifications must include the effective date of the increase, current wholesale acquisition cost, dollar amount of the increase, and a statement explaining whether the increase is due to drug improvements or changes.

Requires manufacturers to identify annually up to ten prescription drugs where the State spends significant health care moneys and whose wholesale acquisition costs increased by 50% or more over two years, or 20% or more in a single year.

Manufacturers must report to the insurance commissioner for identified drugs: a five-year cost increase schedule, written explanation of cost drivers, acquisition information if not developed in-house, and the company's research and development expenditures.

The Act takes effect on July 1, 2050.