Connecticut Senate Bill SB00027

Connecticut 2019 Regular Session

• Introduced: 1/15/19
• Refer: 1/15/19

Caption

An Act Reducing Prescription Drug Prices Under The Medicaid Program.

Impact

This legislation could significantly alter how prescription drug pricing is managed in the state, potentially leading to lower costs for the Medicaid program and, ultimately, for the state budget. By enabling more robust negotiations between the state and pharmaceutical manufacturers, SB00027 aims to create a more favorable pricing environment. Additionally, the transparency requirements regarding manufacturing costs and the negotiated discounts could help in establishing fairer pricing practices overall.

Summary

SB00027 aims to address rising prescription drug costs under the Medicaid program by granting the Commissioner of Social Services the authority to implement various cost-reduction measures. The bill focuses on establishing a price cap for prescription drugs, where negotiations for drug rebates with manufacturers are required if the cap is exceeded. This approach is intended to ensure that the Medicaid program can better control spending on pharmaceuticals while maintaining access to necessary medications for recipients.

Contention

While the bill has the potential to bring about positive change by reducing healthcare costs, there may be contention surrounding how these provisions will be implemented. Concerns may arise regarding the negotiation processes with drug manufacturers and whether they will comply with the state's pricing cap. There might also be debates over the extent of regulations imposed on pharmaceutical benefit managers and how they manage reimbursement processes for Medicaid recipients.