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IN SB0415
Bill
Status
1/14/2019
Primary Sponsor
Jean Breaux
Click for details
AI Summary
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Prohibits manufacturers and wholesale distributors from engaging in price gouging on essential off-patent or generic drugs, defined as drugs with expired patents that appear on the WHO Essential Medicines list or are designated essential by the state, and are made by three or fewer manufacturers
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Triggers attorney general investigation when drug prices increase by 50% or more within 12 months and exceed $80 for a 30-day supply or full course of treatment at wholesale acquisition cost
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Authorizes courts to impose civil penalties up to $10,000 per violation, order restitution to consumers and third-party payors, issue injunctions, and require manufacturers to sell drugs at pre-increase prices for up to one year to state health plan participants
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Requires manufacturers to justify price increases by providing production cost itemizations, manufacturing cost changes, and expenditures to expand drug access when requested by the attorney general
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Classifies price gouging violations as deceptive consumer sales acts, with a two-year statute of limitations from the effective date of the price increase
Legislative Description
Essential off-patent or generic drugs. Prohibits a manufacturer or a wholesale distributor from engaging in price gouging in the sale of an essential off-patent or generic drug. Provides that the office of the secretary of family and social services (office) may provide to the attorney general a written notice of an increase in the price of an essential off-patent or generic drug if the price increase meets specified criteria. Provides that if the attorney general receives a notice of a price increase from the office, the attorney general may request the manufacturer identified in the notice to submit a statement that includes specified information about the increase. Provides that the attorney general has certain powers and duties with respect to price gouging in the sale of an essential off-patent or generic drug, including the power to bring a court action in Marion County if the attorney general determines that price gouging has occurred. Provides that if the court finds that a manufacturer or a wholesale distributor has engaged in price gouging, the court may issue an order to do one or more of the following: (1) Restrain or enjoin the violation. (2) Restore to any consumer (or third party payor) any money obtained by the manufacturer or wholesale distributor as a result of the violation. (3) Require a manufacturer that has engaged in price gouging to make the drug available to participants in certain state health plans or programs for a period of up to one year at the price at which the drug was available to the participants immediately before the effective date of the price increase constituting the violation. (4) Impose a civil penalty of up to $10,000 for each violation. Provides that a person that engages in price gouging in the sale of an essential off-patent or generic drug commits a deceptive act that is subject to the remedies and penalties set forth in the statute concerning deceptive consumer sales. Makes a conforming amendment.
Last Action
First reading: referred to Committee on Health and Provider Services
1/14/2019