Prohibits the state, participating ERISA or any health plan from purchasing referenced drugs for a cost higher than the referenced rate.
Impact
If enacted, S2013 would amend existing state laws by introducing a new chapter focused on prescription drug cost protection within the state's food and drug statutes. The bill highlights the need for regulatory oversight and accountability among pharmaceutical manufacturers and distributors, particularly concerning the pricing of referenced drugs. By establishing penalties for non-compliance, such as withdrawing drugs from the market to evade compliance, the bill aims to ensure that all residents have fair access to essential medications, thereby supporting public health initiatives in the state.
Summary
Bill S2013, titled the Prescription Drug Cost Protection Act, seeks to address the escalating issue of prescription drug prices in Rhode Island by establishing a maximum fair price for certain referenced drugs. This legislation aims to prohibit state entities and health plans from purchasing these drugs at prices exceeding specified rates, thus safeguarding consumers against excessively high costs that may hinder their access to necessary medication. This measure aligns with an ongoing national dialogue regarding pharmaceutical pricing and aims to promote greater health equity across communities in Rhode Island.
Sentiment
The sentiment surrounding Bill S2013 appears overwhelmingly positive among its proponents, who view it as a crucial step forward in combating high drug prices and ensuring the health and economic well-being of Rhode Island residents. Supporters argue that by regulating drug costs, the state can alleviate financial burdens on its citizens and health insurance programs. However, there may be concerns raised by some stakeholders regarding the bill's implications for pharmaceutical companies and potential impacts on drug availability, requiring ongoing dialogue as the legislation moves forward.
Contention
While the bill garners broad support for its intention to protect consumers from soaring drug prices, it may face contention from pharmaceutical manufacturers and certain business interests that argue such regulations could impact their profitability and operational viability. The possibility of imposing fines and penalties for non-compliance could also ignite discussions about regulatory overreach and the balance between necessary oversight and maintaining a favorable business environment for drug manufacturers.
A prescription drug reference rate pilot program; to provide for a legislative management report; to provide a penalty; and to provide an expiration date.