Connecticut Senate Bill SB01202

Connecticut 2023 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23
• Report Pass: 3/21/23

Caption

An Act Concerning Prescription Drug Affordability.

Impact

The introduction of SB 1202 intends to reduce financial burdens on consumers and health plans by limiting the costs associated with prescription drugs. By setting a maximum fair price, the bill is expected to provide a framework for affordability, affecting state entities and health insurers that purchase these drugs. The requirement for annual reporting and savings application is designed to further promote accountability among drug purchasers, potentially leading to more accessible healthcare options and reduced disparities in drug costs across various demographics.

Summary

Senate Bill 1202, titled 'An Act Concerning Prescription Drug Affordability,' aims to regulate the pricing of prescription drugs within the state to ensure they do not exceed certain set limits established under the Inflation Reduction Act of 2022. Effective January 1, 2024, the bill prohibits purchasers from obtaining or seeking reimbursement for referenced drugs at a price higher than the maximum fair price. This legislation mandates that purchasers calculate savings generated from compliance and report how those savings are applied to reduce costs for their insureds, promoting transparency in drug pricing.

Contention

Significant concerns surrounding SB 1202 include the potential impact on drug availability as manufacturers and distributors may seek to withdraw their products from the market if price controls diminish their revenue. The bill stipulates that entities must provide advance notice before withdrawing any drugs in response to price regulations. Critics may argue that stringent pricing policies could lead to fewer innovations in drug development as companies grapple with lower profit margins. The debate touches upon the balance between ensuring affordability and maintaining a competitive market that encourages pharmaceutical advancements.