Oklahoma Senate Bill SB589

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Prescription drugs; requiring drug manufacturer to notify Insurance Department of certain price increases; requiring Department prepare and post report on certain drug prices. Effective date.

Impact

The legislation impacts state laws by introducing new requirements for drug manufacturers, pharmacy benefit managers, and insurance companies. It emphasizes accountability and reporting, as entities must disclose data related to drug prices and spending on prescription drugs. Moreover, it provides the Insurance Department with the authority to audit submissions and impose civil penalties for non-compliance. This means that manufacturers and other stakeholders will need to adapt their reporting processes to align with the new regulations, which may involve additional operational costs.

Summary

SB589 proposes a set of regulations concerning the notification of price increases for prescription drugs. The bill mandates that drug manufacturers notify the Oklahoma Insurance Department of any proposed increases in the wholesale acquisition cost of both brand-name and generic drugs that exceed specified thresholds within a designated timeframe. Specifically, manufacturers must notify the department at least sixty days prior to the effective date of any price increase above 20% for certain medications. The bill aims to enhance transparency in drug pricing and provide consumers with information regarding prescription drug costs.

Contention

While proponents of SB589 argue that the bill will lead to greater transparency and potentially lower prescription drug costs, there may be concerns from stakeholders within the pharmaceutical industry regarding the administrative burden associated with compliance. Opponents could argue that such regulations might stifle innovation in drug pricing and development or lead to further complications within an already complex healthcare landscape. The balancing act will be ensuring that consumer interests are protected without overregulating an industry essential for health advancements.