The bill has significant implications for state laws governing pharmaceutical pricing and consumer protection. By introducing stringent notification requirements, HB 1034 aims to enhance transparency in drug pricing and assist government entities, health insurers, and pharmacy benefit managers in managing their drug cost expenditures more effectively. The proposed measures are expected to allow better consumer awareness and potentially foster competition among drug manufacturers, which could lead to reduced healthcare costs in the long term.
House Bill 1034, introduced by Rep. Mary E. Flowers, amends the Illinois Food, Drug and Cosmetic Act by establishing new requirements for prescription drug manufacturers regarding price increases and notifications. Specifically, it mandates that manufacturers with a wholesale acquisition cost exceeding $40 for a course of therapy must notify specified parties of any price increase that exceeds 10%. This notification must occur in writing at least 60 days prior to the planned increase. Additionally, manufacturers must report further details about the price increase and maintain transparency about their pricing practices.
Notably, there may be contention surrounding the enforcement mechanisms of HB 1034, particularly concerning penalties for non-compliance. The bill imposes a civil penalty of $10,000 per day for manufacturers failing to adhere to the notification requirements. Opponents might argue that this could burden manufacturers and discourage the development of new drugs. Additionally, the bill maintains that these provisions do not interfere with the manufacturers' legal rights to change prices under federal law, which may be another area of debate among stakeholders in the pharmaceutical industry.