Senate Bill 411: Prescription Drug Pricing

• Manufacturers must notify interested parties (state agencies, insurers, pharmacy benefit managers) at least 60 days before any price increase of 10% or more over 12 months, and disclose justification, marketing budget, acquisition details, and five-year price history within 30 days.

• Manufacturers must notify interested parties within three days of FDA approval for new drugs and disclose pricing justification, expected marketing budget, and acquisition information within 30 days.

• Manufacturers or their agents must disclose to prescribers during marketing communications if any ingredient in a drug poses a known risk of dependency in humans.

• The Secretary of Health and Human Services shall assess civil penalties of up to $1,000 per day for manufacturer non-compliance with reporting requirements.

• The Secretary must develop a data collection plan by February 1, 2022, implement a public online portal for drug pricing disclosures, and submit annual reports starting December 1, 2022, identifying the 25 most frequently prescribed drugs, 25 costliest drugs, and 25 drugs with highest year-over-year cost increases.