Texas House Bill HB697

Texas 2019 - 86th Regular

Caption

Relating to required prescription drug cost and rebate reporting; authorizing a civil penalty.

Impact

The bill is expected to influence state laws concerning pharmaceutical transparency and pricing regulation. By enforcing specific reporting requirements on drug manufacturers and pharmacy benefit managers, HB 697 aims to provide the state with a clearer picture of prescription drug pricing mechanisms. This legislation could lead to more informed decision-making and potential future regulations surrounding drug pricing and healthcare costs in Texas.

Summary

House Bill 697 establishes requirements for reporting on the costs and rebates associated with prescription drugs in Texas. It mandates that the Health and Human Services Commission (HHSC) identify essential prescription drugs, including insulin, and report on their wholesale prices. The bill aims to enhance transparency by requiring drug manufacturers to disclose detailed information about their pricing, costs of production, and any justifications for price increases. Additionally, pharmacy benefit managers are required to submit annual reports detailing the rebates they negotiate with manufacturers.

Contention

While the intent behind HB 697 focuses on addressing rising prescription drug costs and enhancing consumer awareness, some stakeholders have raised concerns regarding compliance burdens on manufacturers and pharmacy benefit managers. There is a fear that the bill's reporting requirements may lead to increased operational costs for these entities, which could ultimately be passed on to consumers in the form of higher drug prices. Additionally, the enforcement of civil penalties for non-compliance has raised debates about the potential implications for smaller manufacturers and market competition.