Wisconsin Senate Bill SB1032

Wisconsin 2023-2024 Regular Session

• Introduced: 2/19/24
• Refer: 2/19/24
• Failed: 4/15/24

Caption

Prescription drug cost reporting by manufacturers and providing a penalty.

Impact

This legislation aims to create greater transparency in drug pricing, allowing better oversight of substantial cost changes that could affect consumers and healthcare providers. Manufacturers are required to provide detailed justifications for price increases, which will be made public by the DHS to ensure accountability. This could potentially alter drug procurement costs for state programs and insurance companies, influencing overall healthcare costs for Wisconsin residents.

Summary

Senate Bill 1032 mandates that manufacturers of both brand-name and generic prescription drugs in Wisconsin report substantial price increases and new introductions of drugs. Specifically, if a manufacturer plans to increase the wholesale acquisition cost of a brand-name drug by over 25% within a two-year period, or introduce a brand-name drug costing $30,000 or more annually, they must notify the Department of Health Services (DHS) and the Office of the Commissioner of Insurance (OCI) with a justification. For generic drugs, a price increase exceeding 25% or $300 in a year triggers similar reporting requirements.

Contention

Notable points of contention surrounding SB1032 focus on the implications of increased scrutiny on drug pricing by manufacturers. Supporters argue that it is essential for consumer protection and financial transparency, while opponents express concerns about the potential administrative burden placed on manufacturers and the worry that such regulations may result in reduced drug availability or higher prices if manufacturers choose to withdraw from the state market. The requirement for detailed reporting and justifications may be seen as a shackle by some manufacturers, leading to increased calls for regulatory reform.

Enforcement

The bill lays out penalties for non-compliance, including the potential for significant daily forfeitures for failing to meet reporting requirements. This strict enforcement mechanism emphasizes the importance of adherence to the new regulations and aims to deter any attempts to circumvent the law.