HB 5108 Summary

• Requires prescription drug manufacturers to notify registered qualified purchasers at least 60 days before implementing a 12% or greater wholesale acquisition cost increase on drugs costing more than $40 per treatment course, effective October 1, 2019.

• Mandates manufacturers report quarterly to a new Drug Consumer Protection Commission detailing cost increases, financial justifications, acquisition history, patent information, and sales volume for affected drugs.

• Requires manufacturers introducing new specialty drugs above Medicare thresholds to notify the commission within 3 days of commercial availability and provide marketing plans, acquisition costs, patient volume estimates, and FDA designation information within 30 days.

• Establishes a 13-member Drug Consumer Protection Commission appointed by the governor to review reported information, hold public hearings, and determine if drug pricing is excessive or unconscionable, with authority to refer findings to the Attorney General.

• Imposes $100,000 daily administrative fines on manufacturers violating notification and reporting requirements; takes effect 90 days after enactment, contingent on companion legislation (HB 5109) being enacted.