HF 3131 Summary

• Prohibits manufacturers and wholesale drug distributors from engaging in price gouging on essential off-patent or generic drugs, effective July 1, 2018.

• Defines price gouging as unconscionable price increases that are excessive, unjustified by production costs, and leave consumers with no meaningful choice due to drug importance and insufficient market competition.

• Authorizes the Board of Pharmacy, Commissioner of Human Services, and health plan companies to notify the Attorney General when essential drug prices increase 50% or more within one year and cost more than $80 for a 30-day supply.

• Empowers the Attorney General to require manufacturers to submit cost justifications within 45 days and to obtain records or documents relevant to determining price gouging violations.

• Allows civil penalties to be imposed on licensees or registrants for violations, with penalties designed to eliminate economic gains from violations and reimburse investigation costs; creates private right of action for injured persons to recover damages and attorney fees.