Texas House Bill HB1033

Texas 2021 - 87th Regular

Caption

Relating to prescription drug price disclosure; authorizing a fee; providing an administrative penalty.

Impact

If enacted, HB 1033 will significantly modify how prescription drug pricing is monitored and reported in Texas. It will require pharmaceutical companies to provide a detailed report on pricing, especially for drugs that experience substantial increases, thereby influencing state laws governing drug pricing transparency. Furthermore, it gives the executive commissioner authority to implement rules associated with the management and reporting of this data, which ensures a structured approach to price disclosure.

Summary

House Bill 1033 aims to improve transparency in the pricing of prescription drugs in Texas. It mandates that pharmaceutical manufacturers report their wholesale acquisition costs annually and disclose any significant price increases. The bill establishes a framework for an internet platform where this pricing information can be accessed by the public. The intent is to empower consumers and policymakers with necessary information about drug pricing, potentially fostering competition and driving down costs in the pharmaceutical market.

Sentiment

The sentiment surrounding HB 1033 is generally positive among consumer advocacy groups and progressive legislators who argue that increased transparency can lead to more informed decisions by consumers and potentially lower prices through market competition. However, there are concerns expressed by some pharmaceutical representatives regarding the financial burden of compliance and the potential for this legislation to create broader regulatory burdens on an already heavily regulated industry.

Contention

Notable points of contention include debates over how the reports are generated and the administrative penalties for non-compliance that could be seen as punitive. Concerns about whether the data disclosed could harm business competitiveness or lead to unintended consequences in the pharmaceutical marketplace have also been raised. Additionally, some believe that the reporting requirements may not adequately capture the complexities of drug pricing, while others feel they are necessary to hold companies accountable.