Prescription Drug Price Transparency Act Unanimously Passes the New Mexico House
Legislation within the New Mexico House introduced HB33 and then amended would empower the state to monitor the affordability of necessary medications. This week the New Mexico House of Representatives voted unanimously to pass House Bill 33, the Prescription Drug Transparency Act, which would increase price transparency within the prescription drug supply chain.
HB 33 would require manufacturers, health insurers, pharmacy benefits managers, and pharmacy services administrative organizations to report prescription drug prices and trends to the New Mexico Office of Superintendent of Insurance (OSI) annually.
OSI would then compile an annual report on its findings, present it to the legislature, and make it available to the public. OSI could also impose penalties on reporting entities if they submit information that is late or inaccurate.
House Bill (“HB”) 33 would create the Prescription Drug Transparency Act (The “Act”). The Act would require drug manufacturers to annually notify (starting May 1, 2025) the Superintendent of Insurance of 1) prescription drugs that have a wholesale acquisition cost of $400 or more for a 30-day supply or for a course of treatment that is less than 30 days: 2) brand name drugs that have increased in wholesale acquisition cost by 10% from the previous calendar year: 3) prescription drug products that have increased in wholesale acquisition costs by 16% over the course of the previous two calendar years; and 4) generic drugs that have increased in wholesale acquisition costs by thirty percent from the previous calendar year. For each drug price increase that is reported to the Superintendent of Insurance, the drug manufacturer must also provide information related to the reasoning of the price increases. The Act would also require a drug manufacturer to provide the Superintendent of Insurance 60 days' notice if they intend to introduce a new prescription drug to the United States that has a wholesale acquisition cost of $400 or more for a thirty-day supply or for a course of treatment that is less than 30 days.
The Act would also require pharmacy services administrative organizations and authorized health insurers to annually (starting May 1, 2025) provide the Superintendent of Insurance with information related to the most frequently prescribed and costly prescription drug products.
The Act would also require pharmacy benefits managers to annually (starting May 1, 2025) provide the Superintendent of Insurance with information related to the rebates and fees collected from the drug manufacturers.
The Act would require the Superintendent of Insurance to annually (starting September 30, 2025) submit a report to the Legislative Finance Committee and the Legislative Health and Human Services Committee that details the 1) market trends for prescription drugs, 2) impact of prescription drug prices, 3) populations most affected by high drug costs and 4) any recommendations from the Superintendent of Insurance on how to make drug costs more affordable.
The Act would establish penalties for manufacturers, pharmacy services administrative organizations, authorized health insurers or pharmacy benefits managers that fail to abide by the notification requirements of the Act.
“With the rising cost of prescription drugs, far too many New Mexicans have to make difficult choices about how to pay for necessary medication,” said lead sponsor Rep. Pamela Herndon (D-Albuquerque). “House Bill 33 will hold the prescription drug industry accountable and provide vital information for the state to act upon should necessary drugs become cost prohibitive for New Mexicans who need them.”
Similar laws passed in other states have been shown to help curb price increases.
Additional sponsors include Rep. Cristina Parajón (D-Albuquerque), and Senators Liz Stefanics (D-Cerillos) and Bill Tallman (D-Albuquerque). The bill will now move to the Senate.
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