California Senate Bill SB1010 Amended / Bill

 BILL NUMBER: SB 1010AMENDED BILL TEXT AMENDED IN SENATE MAY 31, 2016 AMENDED IN SENATE MARCH 30, 2016 INTRODUCED BY Senator Hernandez FEBRUARY 11, 2016 An act to amend Section 1385.045 of, to add Section 1367.245 to, and to add Chapter 9 (commencing with Section 127675) to Part 2 of Division 107  of   of,  the Health and Safety Code, and to amend Section 10181.45 of, and to add Section 10123.204 to, the Insurance Code, relating to health care. LEGISLATIVE COUNSEL'S DIGEST SB 1010, as amended, Hernandez. Health care: prescription drug costs. Existing law, the Knox-Keene Health Care Service Plan Act of 1975 (Knox-Keene Act), provides for the licensure and regulation of health care service plans by the Department of Managed Health Care (DMHC) and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance (DOI). Existing law requires health care service plans and health insurers to file specified rate information with DMHC or DOI, as applicable, for health care service plan contracts or health insurance policies in the individual or small group markets and for health care service plan contracts and health insurance policies in the large group market. This bill would require health care service plans or health insurers that file the above-described rate information to report to DMHC or DOI, on a date no later than the reporting of the rate information, specified cost information regarding covered prescription drugs, including generic drugs, brand name drugs,  specialty drugs, and prescription drugs provided in an outpatient setting or sold in a retail   and specialty drugs provided in an outpatient  setting. The information reported would include, but not be limited to, the 25 most frequently prescribed drugs  and the average wholesale price for each drug and the 25 most costly drugs by total plan or insurer spending and the average wholesale price for each drug.   and the 25 most costly drugs by total plan or insurer spending.  DMHC and DOI would be required to compile the reported information into a  consumer-friendly report   report for the public and legislators  that demonstrates the overall impact of drug costs on health care premiums and publish the reports on their Internet Web sites by  January 1   October 1  of each year. Except for the report, DMHC and DOI would be required to keep confidential all information provided pursuant to these provisions. Because a willful violation of the Knox-Keene Act is a crime, this bill would impose a state-mandated local program. This bill would require a manufacturer of a branded prescription drug to notify  in writing  state purchasers, health care service plans, health insurers,  pharmacy benefit managers,  and the chairs of specified Senate and Assembly committees if it is increasing the wholesale acquisition cost of the drug by more than 10%  or by more than $10,000  during any 12-month  period or if it intends to introduce to market a prescription drug that has a wholesale acquisition cost of $10,000 or more annually or per course of treatment.   period.  The bill would require a manufacturer of a generic prescription drug with a specified  price   wholesale acquisition cost  to notify state purchasers, health care service plans, health insurers,  pharmacy benefit managers,  and the chairs of specified Senate and Assembly committees if it is increasing the wholesale acquisition cost of the drug by more than  10%   25%  during any 12-month period.  The bill would require a manufacturer of a prescription drug to notify in writing, within 3 days of approval by the federal Food and Drug Administration, state purchasers, health care service plans, health insurers, pharmacy benefit managers, and the chairs of specified Senate and Assembly committees if it is   introducing a new prescription drug to market at a wholesale acquisition cost of $10,000 or more annually or per course of treatment.  The bill would require a manufacturer, within 30 days of notification of a price increase, or  notification  of the introduction to market of a prescription drug that has a wholesale acquisition cost of $10,000 or more annually or per course of treatment, to report specified information regarding the drug price to each state purchaser, health care service plan,  and  health insurer,  or pharmacy benefit manager  and would require a manufacturer who fails to provide the required information within the 30 days to be subject to a civil penalty of $1,000 per day. The bill would also require the Legislature to conduct an annual public hearing regarding the  price increases and information reported,   aggregate trends in prescription drug pricing,  as prescribed.  Except for the hearing, the Legislature would be required to keep confidential all information provided pursuant to these provisions.  Existing law requires, for large group health care service plan contracts and health insurance policies, each health care service plan or health insurer to file with DMHC or DOI the weighted average rate increase for all large group benefit designs during the 12-month period ending January 1 of the following calendar year, and to also disclose specified information for the aggregate rate information for the large group market. This bill would add to that disclosure of information for the aggregate rate information for the large group market, the requirement for health care service plans or health insurers to disclose specified cost information regarding covered prescription drugs, including generic  drugs,   drugs but excluding generic specialty drugs,  brand name drugs excluding specialty drugs, and specialty drugs dispensed at a pharmacy, network pharmacy, or mail order pharmacy for outpatient use. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1367.245 is added to the Health and Safety Code, immediately preceding Section 1367.25, to read: 1367.245. (a) (1) A health care service plan that reports rate information pursuant to Section 1385.03 or 1385.045 shall report the information described in paragraph (2) to the department on a date no later than it reports the rate information. (2) For all covered prescription drugs, including generic drugs, brand name drugs,  specialty drugs, and prescription drugs provided in an outpatient setting or sold in a retail   and specialty drugs provided in an outpatient  setting, all of the following shall be reported: (A) The 25 most frequently prescribed  drugs and the average wholesale price for each drug.   drugs.  (B) The 25 most costly drugs by total plan  spending and the average wholesale price for each drug.   spending.  (C) The 25 drugs with the highest year-over-year increase  and the average wholesale price for each drug.   in spending.  (b) The department shall compile the information reported pursuant to subdivision (a) into a  consumer-friendly report   report for the public and legislators  that demonstrates the overall impact of drug costs on health care premiums. The data in the report shall be aggregated and shall not reveal information specific to individual health care service plans. (c) For the purposes of this section, a "specialty drug" is one that exceeds the threshold for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)). (d) By  January 1   October 1  of each year, the department shall publish on its Internet Web site the report required pursuant to subdivision (b). (e) After the report required in subdivision (b) is released, the department shall include the report as part of the public meeting required pursuant to subdivision (b) of Section 1385.045. (f) Except for the report required pursuant to subdivision (b), the department shall keep confidential all of the information provided to the department pursuant to this section, and that information shall be exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). SEC. 2. Section 1385.045 of the Health and Safety Code is amended to read: 1385.045. (a) For large group health care service plan contracts, each health plan shall file with the department the weighted average rate increase for all large group benefit designs during the 12-month period ending January 1 of the following calendar year. The average shall be weighted by the number of enrollees in each large group benefit design in the plan's large group market and adjusted to the most commonly sold large group benefit design by enrollment during the 12-month period. For the purposes of this section, the large group benefit design includes, but is not limited to, benefits such as basic health care services and prescription drugs. The large group benefit design shall not include cost sharing, including, but not limited to, deductibles, copays, and coinsurance. (b) (1) A plan shall also submit any other information required pursuant to any regulation adopted by the department to comply with this article. (2) The department shall conduct an annual public meeting regarding large group rates within three months of posting the aggregate information described in this section in order to permit a public discussion of the reasons for the changes in the rates, benefits, and cost sharing in the large group market. The meeting shall be held in either the Los Angeles area or the San Francisco Bay area. (c) A health care service plan subject to subdivision (a) shall also disclose the following for the aggregate rate information for the large group market submitted under this section: (1) For rates effective during the 12-month period ending January 1 of the following year, number and percentage of rate changes reviewed by the following: (A) Plan year. (B) Segment type, including whether the rate is community rated, in whole or in part. (C) Product type. (D) Number of enrollees. (E) The number of products sold that have materially different benefits, cost sharing, or other elements of benefit design. (2) For rates effective during the 12-month period ending January 1 of the following year, any factors affecting the base rate, and the actuarial basis for those factors, including all of the following: (A) Geographic region. (B) Age, including age rating factors. (C) Occupation. (D) Industry. (E) Health status factors, including, but not limited to, experience and utilization. (F) Employee, and employee and dependents, including a description of the family composition used. (G) Enrollees' share of premiums. (H) Enrollees' cost sharing. (I) Covered benefits in addition to basic health care services, as defined in Section 1345, and other benefits mandated under this article. (J) Which market segment, if any, is fully experience rated and which market segment, if any, is in part experience rated and in part community rated. (K) Any other factor that affects the rate that is not otherwise specified. (3) (A) The plan's overall annual medical trend factor assumptions for all benefits and by aggregate benefit category, including hospital inpatient, hospital outpatient, physician services, prescription drugs and other ancillary services, laboratory, and radiology for the applicable 12-month period ending January 1 of the following year. A health plan that exclusively contracts with no more than two medical groups in the state to provide or arrange for professional medical services for the enrollees of the plan shall instead disclose the amount of its actual trend experience for the prior contract year by aggregate benefit category, using benefit categories, to the maximum extent possible, that are the same as, or similar to, those used by other plans. (B) The amount of the projected trend separately attributable to the use of services, price inflation, and fees and risk for annual plan contract trends by aggregate benefit category, including hospital inpatient, hospital outpatient, physician services, prescription drugs and other ancillary services, laboratory, and radiology. A health plan that exclusively contracts with no more than two medical groups in the state to provide or arrange for professional medical services for the enrollees of the plan shall instead disclose the amount of its actual trend experience for the prior contract year by aggregate benefit category, using benefit categories that are, to the maximum extent possible, the same or similar to those used by other plans. (C) A comparison of the aggregate per enrollee per month costs and rate of changes over the last five years for each of the following: (i) Premiums. (ii) Claims costs, if any. (iii) Administrative expenses. (iv) Taxes and fees. (D) Any changes in enrollee cost sharing over the prior year associated with the submitted rate information, including both of the following: (i) Actual copays, coinsurance, deductibles, annual  out of pocket   out-of-pocket  maximums, and any other cost sharing by the benefit categories determined by the department. (ii) Any aggregate changes in enrollee cost sharing over the prior years as measured by the weighted average actuarial value, weighted by the number of enrollees. (E) Any changes in enrollee benefits over the prior year, including a description of benefits added or eliminated, as well as any aggregate changes, as measured as a percentage of the aggregate claims costs, listed by the categories determined by the department. (F) Any cost containment and quality improvement efforts since the plan's prior year's information pursuant to this section for the same category of health benefit plan. To the extent possible, the plan shall describe any significant new health care cost containment and quality improvement efforts and provide an estimate of potential savings together with an estimated cost or savings for the projection period. (G) The number of products covered by the information that incurred the excise tax paid by the health plan. (4) (A) For covered prescription drugs, including generic  drugs,   drugs but excluding specialty generic drugs,  brand name drugs excluding specialty drugs, and specialty drugs dispensed at a plan pharmacy, network pharmacy, or mail order pharmacy for outpatient use all of the following shall be disclosed: (i) The percentage of the premium attributable to prescription drug costs for the prior year for each category of prescription  drugs.   drugs as defined in subparagraph (A).  (ii) The year-over-year  increase in the percentage of the premium attributable to each category of prescription drugs.   increase, as a percentage, in total spending for each category of prescription drugs as defined in subparagraph (A).  (iii) The year-over-year increase in per member, per month costs for drug prices compared to other components of the health care premium. (iv) The specialty tier formulary list. (B) The plan shall include the percentage of the premium attributable to prescription drugs administered in a doctor's office that are  part of   covered under  the medical benefit as separate from the pharmacy benefit, if available. (d) The information required pursuant to this section shall be submitted to the department on or before October 1, 2016, and on or before October 1 annually thereafter. Information submitted pursuant to this section is subject to Section 1385.07.  (e) For the purposes of this section, a "specialty drug" is one that exceeds the threshold for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)).  SEC. 3. Chapter 9 (commencing with Section 127675) is added to Part 2 of Division 107 of the Health and Safety Code, to read: CHAPTER 9. PRESCRIPTION DRUG PRICING FOR  STATE  PURCHASERS 127675. (a) This chapter shall apply to any manufacturer of a prescription drug that is purchased or reimbursed by any of the following: (1) A state purchaser in California, including, but not limited to, the Public Employees' Retirement System, the State Department of Health Care Services, the Department of General Services, and the Department of Corrections and Rehabilitation, or an entity acting on behalf of a state purchaser. (2) A health care service plan licensed pursuant to Section 1353. (3) A health insurer holding a valid outstanding certificate of authority from the Insurance Commissioner.  (4) A pharmacy benefit manager as defined in subdivision (j) of Section 4430 of the Business and Professions Code.  (b) (1) A manufacturer of a branded prescription drug shall notify each state purchaser, health care service plan,  or  health  insurer   insurer, or pharmacy benefit manager  if it is increasing the wholesale acquisition cost of a prescription drug by more than 10 percent  or by more than ten thousand dollars ($10,000)  during any 12-month  period or if it intends to introduce to market a prescription drug that has a wholesale acquisition cost of ten thousand dollars ($10,000) or more annually or per course of treatment.   period.  The notice shall be provided in writing at least 60 days prior to the planned effective date of the increase. A copy of the notice shall be provided concurrently to the Chairs of the Senate Committee on Appropriations, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Appropriations, and the Assembly Committee on Budget. (2) A manufacturer of a generic prescription drug with a  price   wholesale acquisition cost  of one hundred dollars ($100) or more per  30-day   month  supply shall notify a state purchaser, health care service plan,  or  health  insurer   insurer, or pharmacy benefit manager  if it is increasing the wholesale acquisition cost of the prescription drug by more than  10   25  percent during a 12-month period. The notice shall be provided in writing at least 60 days prior to the planned effective date of the increase. A copy of the notice shall be provided concurrently to the Chairs of the Senate Committee on Appropriations, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Appropriations, and the Assembly Committee on Budget. (3)  (A)    Within 30 days of notification of a price  increase, or of the introduction to market of a prescription drug that has a wholesale acquisition cost of ten thousand dollars ($10,000) or more annually or per course of treatment,   increase under paragraph (1) or (2),  a manufacturer shall report all of the following information to each state purchaser, health care service plan,  or health insurer:   health insurer, or pharmacy benefit manager:   (i)   (A)  A justification for the proposed  increase in the price of the drug, including all information and supporting documentation as to why the increase is justified.     price increase. The manufacturer may limit the information in   the justification to that which is publicly available.   (ii) The total dollar amount of public funding received by the manufacturer for the development and marketing, including, but not limited to, state and federal tax credits, grants, and all other public subsidies.   (iii)   (B)    The  expected   previous year's  marketing budget for the drug.  (iv)   (C)  The date  the drug was purchased if it   and price of acquisition if the drug  was not developed by the manufacturer.  (v)   (D)  A schedule of  past  price increases for the  drug.   drug for the previous five years.   (4) (A) A manufacturer of a prescription drug shall notify in writing each state purchaser, health care service plan, health insurer, or pharmacy benefit manager if it is introducing a new prescription drug to market at a wholesale acquisition cost of ten thousand dollars ($10,000) or more annually or per course of treatment. The notice shall be provided in writing within three days of the federal Food and Drug Administration approval. A copy of the notice shall be provided concurrently to the Chairs of the Senate Committee on Appropriations, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Appropriations, and the Assembly Committee on Budget.   (B) Within 30 days of notification of a new drug under this paragraph, a manufacturer shall report all of the following information to each state purchaser, health care service plan, health insurer, or pharmacy benefit manager:   (i) A justification for the introductory price. The manufacturer may limit the contents of the justification to publicly available information.   (ii) The expected marketing budget for the drug.   (iii) The date and price of acquisition if the drug was not developed by the manufacturer.   (B)   (5)  Failure to report the information  required pursuant to paragraph (3) or subparagraph (B) of paragraph (4)  to state purchasers, health care service plans,  or  health  insurers   insurers, or pharmacy benefit managers  shall result in a civil penalty of one thousand dollars ($1,000) per day for every day after the 30-day notification period. (c) The Legislature shall conduct an annual public hearing  regarding the price increases and information reported pursuant to this section. The hearing shall provide for public discussion of the reasons for the price increases, emerging trends, decreases in drug prices, and the impact on health care affordability and premiums.   on aggregate trends in prescription drug pricing. The hearing shall provide for public discussion of overall price increases, emerging trends, decreases in drug spending, and the impact of prescription drug spending on health care affordability and premiums.   (d) Except for the hearing required pursuant to subdivision (c), the Legislature shall keep confidential all of the information provided to the Legislature pursuant to this section, and that information shall be exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).  (d)   (e)  This chapter shall not restrict the legal ability of a pharmaceutical manufacturer to change prices as permitted under federal law. SEC. 4. Section 10123.204 is added to the Insurance Code, immediately preceding Section 10123.206, to read: 10123.204. (a) (1) A health insurer that reports rate information pursuant to Section 10181.3 or 10181.45 shall report the information described in paragraph (2) to the department on a date no later than it reports the rate information. (2) For all covered prescription drugs, including generic drugs, brand name drugs,  specialty drugs, and prescription drugs provided in an outpatient setting or sold in a retail   and specialty drugs provided in an outpatient  setting, all of the following shall be reported: (A) The 25 most frequently prescribed  drugs and the average wholesale price for each drug.   drugs.  (B) The 25 most costly drugs by total insurer  spending and the average wholesale price for each drug.   spending.  (C) The 25 drugs with the highest year-over-year increase  and the average wholesale price for each drug.   in spending.  (b) The department shall compile the information reported pursuant to subdivision (a) into a  consumer-friendly report   report for the public and legislators  that demonstrates the overall impact of drug costs on health care premiums. The data in the report shall be aggregated and shall not reveal information specific to individual health insurers. (c) For the purposes of this section, a "specialty drug" is one that exceeds the threshold for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)). (d) By  January 1   October 1  of each year, the department shall publish on its Internet Web site the report required pursuant to subdivision (b). (e) After the report required in subdivision (b) is released, the department shall include the report as part of the public meeting required pursuant to subdivision (b) of Section 10181.45. (f) Except for the report required pursuant to subdivision (b), the department shall keep confidential all of the information provided to the department pursuant to this section, and that information shall be exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). SEC. 5. Section 10181.45 of the Insurance Code is amended to read: 10181.45. (a) For large group health insurance policies, each health insurer shall file with the department the weighted average rate increase for all large group benefit designs during the 12-month period ending January 1 of the following calendar year. The average shall be weighted by the number of insureds in each large group benefit design in the insurer's large group market and adjusted to the most commonly sold large group benefit design by enrollment during the 12-month period. For the purposes of this section, the large group benefit design includes, but is not limited to, benefits such as basic health care services and prescription drugs. The large group benefit design shall not include cost sharing, including, but not limited to, deductibles, copays, and coinsurance. (b) (1) A health insurer shall also submit any other information required pursuant to any regulation adopted by the department to comply with this article. (2) The department shall conduct an annual public meeting regarding large group rates within three months of posting the aggregate information described in this section in order to permit a public discussion of the reasons for the changes in the rates, benefits, and cost sharing in the large group market. The meeting shall be held in either the Los Angeles area or the San Francisco Bay area. (c) A health insurer subject to subdivision (a) shall also disclose the following for the aggregate rate information for the large group market submitted under this section: (1) For rates effective during the 12-month period ending January 1 of the following year, number and percentage of rate changes reviewed by the following: (A) Plan year. (B) Segment type, including whether the rate is community rated, in whole or in part. (C) Product type. (D) Number of insureds. (E) The number of products sold that have materially different benefits, cost sharing, or other elements of benefit design. (2) For rates effective during the 12-month period ending January 1 of the following year, any factors affecting the base rate, and the actuarial basis for those factors, including all of the following: (A) Geographic region. (B) Age, including age rating factors. (C) Occupation. (D) Industry. (E) Health status factors, including, but not limited to, experience and utilization. (F) Employee, and employee and dependents, including a description of the family composition used. (G) Insureds' share of premiums. (H) Insureds' cost sharing. (I) Covered benefits in addition to basic health care services, as defined in Section 1345 of the Health and Safety Code, and other benefits mandated under this article. (J) Which market segment, if any, is fully experience rated and which market segment, if any, is in part experience rated and in part community rated. (K) Any other factor that affects the rate that is not otherwise specified. (3) (A) The insurer's overall annual medical trend factor assumptions for all benefits and by aggregate benefit category, including hospital inpatient, hospital outpatient, physician services, prescription drugs and other ancillary services, laboratory, and radiology for the applicable 12-month period ending January 1 of the following year. A health insurer that exclusively contracts with no more than two medical groups in the state to provide or arrange for professional medical services for the health insurer's insureds shall instead disclose the amount of its actual trend experience for the prior contract year by aggregate benefit category, using benefit categories, to the maximum extent possible, that are the same or similar to those used by other insurers. (B) The amount of the projected trend separately attributable to the use of services, price inflation, and fees and risk for annual policy trends by aggregate benefit category, including hospital inpatient, hospital outpatient, physician services, prescription drugs and other ancillary services, laboratory, and radiology. A health insurer that exclusively contracts with no more than two medical groups in the state to provide or arrange for professional medical services for the insureds shall instead disclose the amount of its actual trend experience for the prior contract year by aggregate benefit category, using benefit categories that are, to the maximum extent possible, the same or similar to those used by other insurers. (C) A comparison of the aggregate per insured per month costs and rate of changes over the last five years for each of the following: (i) Premiums. (ii) Claims costs, if any. (iii) Administrative expenses. (iv) Taxes and fees. (D) Any changes in insured cost sharing over the prior year associated with the submitted rate information, including both of the following: (i) Actual copays, coinsurance, deductibles, annual  out of pocket   out-of-pocket  maximums, and any other cost sharing by the benefit categories determined by the department. (ii) Any aggregate changes in insured cost sharing over the prior years as measured by the weighted average actuarial value, weighted by the number of insureds. (E) Any changes in insured benefits over the prior year, including a description of benefits added or eliminated as well as any aggregate changes as measured as a percentage of the aggregate claims costs, listed by the categories determined by the department. (F) Any cost containment and quality improvement efforts made since the insurer's prior year's information pursuant to this section for the same category of health insurer. To the extent possible, the insurer shall describe any significant new health care cost containment and quality improvement efforts and provide an estimate of potential savings together with an estimated cost or savings for the projection period. (G) The number of products covered by the information that incurred the excise tax paid by the health insurer. (4) (A) For covered prescription drugs, including generic  drugs,   drugs but excluding specialty generic drugs,  brand name drugs excluding specialty drugs, and specialty drugs dispensed at a pharmacy, network pharmacy, or mail order pharmacy for outpatient use all of the following shall be disclosed: (i) The percentage of the premium attributable to prescription drug costs for the prior year for each category of prescription  drugs.   drugs as defined in subparagraph (A).  (ii) The year-over-year  increase in the percentage of the premium attributable to each category of prescription drugs.   increase, as a percentage, in total spending for each category of prescription drugs as defined in subparagraph (A).  (iii) The year-over-year increase in per member, per month costs for drug prices compared to other components of the health care premium. (iv) The specialty tier formulary list. (B) The insurer shall include the percentage of the premium attributable to prescription drugs administered in a doctor's office that are  part of   covered under  the medical benefit as separate from the pharmacy benefit, if available. (d) The information required pursuant to this section shall be submitted to the department on or before October 1, 2016, and on or before October 1 annually thereafter. Information submitted pursuant to this section is subject to Section 10181.7.  (e) For the purposes of this section, a "specialty drug" is one that exceeds the threshold for a specialty drug under the Medicare Part D program (Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108-173)).  SEC. 6. The Legislature finds and declares that Sections  1 and   1, 3, and  4 of this act, which add  Section 1367.245   Sections 1367.245 and 127675  to the Health and Safety Code and Section 10123.204 to the Insurance Code, impose a limitation on the public's right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: In order to protect proprietary, confidential information reported by prescription drug manufacturers, health care service plans, and health insurers, and to protect the integrity of the competitive market, it is necessary that this act limit the public's right of access to that information. SEC. 7. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.