RI H7950

Imposes an 80% penalty on prescription drug manufacturers for "unsupported price increases" (price hikes lacking adequate new clinical evidence), calculated as the difference between actual revenue and revenue if prices had stayed at the prior year's level adjusted for inflation

Applies only to manufacturers with at least $250,000 in total annual sales within Rhode Island, with penalties collected annually via returns due April 15

Uses the Institute for Clinical and Economic Review (ICER) annual unsupported price increase report to identify drugs subject to the penalty, which applies for two calendar years after a drug appears in the report

Prohibits manufacturers from withdrawing identified drugs from sale in Rhode Island to avoid the penalty, requiring 180 days written notice to the Board of Pharmacy and Attorney General, with a $500,000 penalty for violations

Revenue collected goes to a restricted receipt account for the Office of the Health Insurance Commissioner to offset administrative costs, with the balance deposited in the general fund