Texas House Bill HB1298

Texas 2019 - 86th Regular

Caption

Relating to prescription drug cost increases; imposing a civil penalty.

Impact

Furthermore, the bill imposes civil penalties on manufacturers failing to report drug price increases or related information as requested. Specifically, manufacturers who violate the reporting requirements could face fines of up to $10,000 per violation. This provision intends to enforce compliance and encourage manufacturers to justify substantial price increases, ensuring that price hikes in prescription drugs are made transparently and with appropriate reasoning, thereby aiming to protect consumers and the state from unforeseen financial burdens due to escalating drug costs.

Summary

House Bill 1298 aims to enhance prescription drug cost transparency in Texas by mandating the Health and Human Services Commission to compile and maintain lists of prescription drugs based on their wholesale acquisition costs and state spending. The bill requires that these lists include drugs that have significantly increased in price over specified periods, allowing for better monitoring of drug price trends within state-funded health benefit plans. The intent is to provide valuable information that can help inform policymakers and the public about rising drug costs, thus promoting accountability among manufacturers.

Contention

Notable points of contention surrounding HB 1298 include concerns regarding the potential for overreach in the state's authority over prescription drug pricing and the implications it may have for the pharmaceutical market. Critics may argue that while transparency is necessary, mandating extensive reporting could lead manufacturers to increase prices preemptively to offset compliance costs. Additionally, questions arise about the balance between state regulation and the necessary freedoms of manufacturers to set prices in a competitive market, highlighting the ongoing debate over healthcare costs and drug pricing.