Wisconsin Assembly Bill AB1134

Wisconsin 2023-2024 Regular Session

• Introduced: 3/6/24
• Refer: 3/6/24
• Failed: 4/15/24

Caption

Prescription drug cost reporting by manufacturers and providing a penalty.

Impact

The bill's implications are significant for healthcare transparency in Wisconsin. By mandating these disclosures, AB1134 aims to provide the Department of Health Services (DHS) and the Office of the Commissioner of Insurance (OCI) with critical data on drug pricing trends. This information will be analyzed and published, thus potentially informing both consumers and healthcare providers about the financial landscape of prescription medications, facilitating better-informed decisions and policy-making in the health sector.

Summary

Assembly Bill 1134 focuses on prescription drug cost reporting by manufacturers. It establishes a framework requiring manufacturers of both brand-name and generic drugs to notify state agencies about significant price increases and high-cost drug introductions. Specifically, if a manufacturer intends to raise the wholesale acquisition cost of a brand-name drug by more than 25% over 24 months, or introduce a drug with an annual cost exceeding $30,000, they must provide advance notice and justification. Similar stipulations apply to generic drugs based on specific price thresholds.

Contention

While supporters argue that AB1134 will promote transparency and accountability among pharmaceutical manufacturers, some industry representatives express concerns over the potential for unintended consequences. Critics argue that such regulations could discourage drug innovation and increase operational complexities for manufacturers. The debate centers around balancing the need for transparency in drug pricing against the potential impacts on drug availability and development in an already complex healthcare market.