Judiciary committee recommends Vitelli drug pricing transparency bill
AUGUSTA —The Legislature’s Judiciary Committee on Thursday voted in favor of a bill sponsored by Sen. Eloise Vitelli, D-Arrowsic, that would require more disclosure of prescription drug development costs and allow the attorney general to levy fines and take action against drug manufacturers that fail to comply.
“The high cost of drugs is not news. The recent and sudden spike in the price of Epipens was but one high profile instance where the cost of medicine entered mainstream conversation. Even without such dramatic events, we have all become aware of the rising costs of drugs in this country and the devastating consequences this has on seniors and families,” said Sen. Vitelli. “When individuals begin to make choices between taking a life-sustaining drug or buying food and paying rent, we know we have a problem that cannot — should not — be solved by individuals themselves.”
Many common medications have seen price increases of at least 1000 percent in recent years, including Insulin, EpiPens, and Sovaldi. According to the Centers for Disease Control and Prevention, almost 1 in 10 American adults don’t take their medication as prescribed because of cost considerations.
The amended version of Vitelli’s legislation — LD 1406, “An Act to Promote Prescription Drug Price Transparency” — amends laws governing the Maine Health Data Organization’s (MDHO) collection and reporting of prescription drug prices. It directs the MDHO to collect and report on the top 25 prescription drugs that are the most frequently prescribed in the State, the most costly, and have the highest year-over-year increase in total spending.
The MDHO would then require the manufacturer of each drug on the list to disclose drug production, research and development costs, marketing and advertising costs and actual costs paid by purchasers. The MDHO would submit an annual report including any recommendations for increasing transparency.
Lastly, the bill gives the attorney general authority to seek injunctive relief, costs and attorney’s fees, as well as a civil penalty of up to $10,000 for each day after the reporting deadline for failure to provide the information. Attorney General Janet Mills spoke in favor of the proposal last year at the public hearing.
“The cost of prescription drugs now accounts for one-sixth of all health care spending. Prescription drug costs are rising faster than wages, inflation, or overall health care spending,” said Mills. “Maine, with its increasingly aging population, is hit especially hard by these drug prices.”
Steve Butterfield from Consumers for Affordable Health Care (CAHC), who also spoke at last year’s hearing, said that it is important for consumers to have information about their prescription drugs.
“Consumers are increasingly asked to shoulder more of the cost burden of their care. Data shows that this had made them smarter, savvier shoppers when it comes to prescription drugs,” said Butterfield.
A similar measure passed in Maryland went into effect last fall, around the same time Governor Brown of California signed their own version into law.
In addition to the support of CAHC, the bill has received the backing of numerous groups and health care advocates, including Maine AARP, Community Health Options and Harvard Pilgrim Health Care. The bill will now head to the floor of the Senate for an initial vote.
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