New Jersey Senate Bill S1667

New Jersey 2022-2023 Regular Session

• Introduced: 2/14/22
• Refer: 2/14/22

Caption

Prohibits excessive increases in prices charged for essential off-patent and generic prescription drugs and biological products.

Impact

If enacted, S1667 will significantly impact New Jersey's pharmaceutical pricing landscape by limiting the ability of drug manufacturers to impose sudden and unjustified price hikes on essential drugs. The bill mandates that any price increase of 50% or more for a 30-day supply of a drug could trigger a review by the state's Attorney General. This could potentially restore market competition and enhance public health outcomes by making crucial medications more accessible to consumers, especially in economically disadvantaged communities.

Summary

Senate Bill S1667 aims to protect consumers by prohibiting manufacturers and wholesale distributors from excessively increasing the prices of essential off-patent and generic prescription drugs and biological products. The legislation defines price gouging specifically as an unconscionable increase that is not justified by production costs or efforts to expand access to these medications. This bill serves as a safeguard to ensure that essential medications remain affordable for consumers, particularly those who depend on them for health reasons.

Contention

One potential area of contention surrounding S1667 is related to the delineation of acceptable price increases. Manufacturers may argue that certain cost increases are necessary based on market conditions, and the need for transparency in reporting production costs may create pushback from industry stakeholders. Additionally, the bill’s confidentiality provisions surrounding the justification process could lead to tensions regarding consumer awareness and corporate accountability.