Drug Price Transparency: Mandatory Reporting for Significant Price Hikes.
This law mandates pharmaceutical manufacturers to publicly justify significant price increases for certain high-cost drugs, especially those used by Medicare and Medicaid beneficiaries. Citizens will gain access to detailed financial data, including manufacturing costs, R&D spending, marketing expenses, and company profits, allowing them to better understand drug pricing decisions. The goal is to increase accountability and transparency in the drug market.
Key points
Manufacturers must report price increases of 10% over 12 months or 25% over 36 months, 30 days before they take effect.
Reports must detail R&D costs, marketing expenditures, revenue, net profit from the drug, and executive compensation metrics.
The government will publish these reports online in plain, user-friendly language for public review.
Failure to submit the required justification reports will result in a daily civil penalty of $100,000.
Expired
Citizen Poll