1 of 1 HOUSE DOCKET, NO. 1738 FILED ON: 1/18/2023 HOUSE . . . . . . . . . . . . . . . No. 1205 The Commonwealth of Massachusetts _________________ PRESENTED BY: Bradley H. Jones, Jr. _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to prescription drug price transparency. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Bradley H. Jones, Jr.20th Middlesex1/17/2023Nicholas A. Boldyga3rd Hampden1/26/2023Susan Williams Gifford2nd Plymouth1/26/2023F. Jay Barrows1st Bristol1/26/2023Marcus S. Vaughn9th Norfolk1/27/2023Angelo L. D'Emilia8th Plymouth1/28/2023Kimberly N. Ferguson1st Worcester2/1/2023 1 of 3 HOUSE DOCKET, NO. 1738 FILED ON: 1/18/2023 HOUSE . . . . . . . . . . . . . . . No. 1205 By Representative Jones of North Reading, a petition (accompanied by bill, House, No. 1205) of Bradley H. Jones, Jr. and others that the Health Policy Commission and health insurers create listings of certain high cost prescription drugs and that the Attorney General require drug manufacturers to provide information to justify increases in costs. Health Care Financing. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 1278 OF 2021-2022.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act relative to prescription drug price transparency. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 6D of the General Laws, as appearing in the 2020 Official Edition, 2is hereby amended by inserting after section 19 the following new section:- 3 Section 20. (a)(1) The commission, in consultation with the center, shall create annually a 4list of 10 drugs on which the commonwealth’s MassHealth program spends significant 5healthcare dollars and for which the wholesale acquisition cost has increased by 50 percent or 6more over the past five years or by 15 percent or more during the previous calendar year, or both. 7The list shall include at least one generic and one brand name drug and shall indicate each of the 8drugs on the list that the commission considers specialty tier drugs. 2 of 3 9 (2) Each carrier with more than 5,000 covered lives in the commonwealth for major 10medical health insurance shall create annually a list of 10 prescription drugs on which its health 11insurance plans spend significant amounts of their premium dollars and for which the cost to the 12plans, net of rebates and other price concessions, has increased by 50 percent or more over the 13past five years or by 15 percent or more during the previous calendar year, or both. The list shall 14include at least one generic and one brand name drug and shall indicate each of the drugs on the 15list that the insurer considers specialty tier drugs. 16 (3) The commission and payers shall provide to the office of the attorney general the lists 17of prescription drugs developed pursuant to this section annually on or before June 1. Each 18carrier shall provide the office of the attorney general the percentage by which the net cost to its 19plans increased over the applicable period or periods for each drug on the list, as well as the 20carrier’s total expenditure, net of rebates and other price concessions, for each drug on the list 21during the most recent calendar year. 22 (b) Of the prescription drugs listed by the commission and the carriers pursuant to 23subsection (a) of this section, the office of the attorney general shall identify up to 15 drugs, of 24those appearing on more than one payer’s list, on which the greatest amount of money was spent 25across all payers during the previous calendar year. 26 (1) For the 15 drugs identified by the office of the attorney general pursuant to subsection 27(b) of this section, the office of the attorney general shall require the manufacturer of each such 28drug to provide all relevant information and supporting documentation necessary to justify the 29increase in the net cost of the drug. 3 of 3 30 (2) The attorney general shall provide a report to the legislature on or before December 1 31of each year based on the information received from manufacturers pursuant to this section. 32 (c) The commission shall promulgate all regulations necessary to implement this section, 33including, but not limited to, establishing penalties for noncompliance with the requirements set 34forth in this section.