senate Bill S2544

2017-2018 Legislative Session

Prohibits price gouging by manufacturers of prescription drugs

download bill text pdf

Sponsored By

Current Bill Status - In Senate Finance Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 01, 2017 reported and committed to finance
Jan 13, 2017 referred to health

Votes

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Mar 1, 2017 - Health committee Vote

S2544
16
0
committee
16
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Health committee vote details

S2544 - Details

See Assembly Version of this Bill:
A5733
Law Section:
Public Health Law
Laws Affected:
Add §278-a, Pub Health L; add §396-rrr, Gen Bus L
Versions Introduced in 2015-2016 Legislative Session:
S7022

S2544 - Summary

Prohibits price gouging by manufacturers of prescription drugs.

S2544 - Sponsor Memo

S2544 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2544

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 13, 2017
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law and the general business  law,  in
  relation to price gouging on prescription drugs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public health law is amended by adding  a  new  section
278-a to read as follows:
  S  278-A. LIMITATION ON EXCESSIVE PRICE INCREASES; PRESCRIPTION DRUGS:
1. IN THE EVENT A MANUFACTURER, AS DEFINED IN SUBDIVISION TWENTY-ONE  OF
SECTION  SIXTY-EIGHT  HUNDRED  TWO  OF  THE EDUCATION LAW, OF A BRAND OR
GENERIC DRUG, MADE AVAILABLE IN NEW YORK, INCREASES THE WHOLESALE ACQUI-
SITION COST (WAC) OF A DRUG BY A PERCENT EQUAL TO OR  GREATER  THAN  ONE
HUNDRED  PERCENT AT ANY ONE TIME OR IN THE AGGREGATE IN ANY TWELVE MONTH
PERIOD:
  (A) THE MANUFACTURER SHALL, NOT LESS THAN THIRTY DAYS PRIOR TO  INSTI-
TUTING  SUCH  INCREASE, NOTIFY THE COMMISSIONER AND THE DRUG UTILIZATION
REVIEW BOARD ESTABLISHED UNDER SECTION THREE  HUNDRED  SIXTY-NINE-BB  OF
THE  SOCIAL  SERVICES  LAW.  NOTICE SHALL BE PROVIDED ON THE FORM ESTAB-
LISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION; AND
  (B) THE COMMISSIONER SHALL REQUIRE PRIOR AUTHORIZATION  AND  AUTHORIZE
MEDICAID  MANAGED CARE PLANS TO REQUIRE PRIOR AUTHORIZATION FOR THE DRUG
EFFECTIVE AS OF THE DATE OF THE PRICE INCREASE AND  CONTINUING  UNTIL  A
DETERMINATION IS MADE BY THE DRUG UTILIZATION REVIEW BOARD.
  2.  THE COMMISSIONER, IN CONSULTATION WITH THE DRUG UTILIZATION REVIEW
BOARD, SHALL  PRODUCE  AND  MAKE  AVAILABLE  TO  MANUFACTURERS  A  PRICE
INCREASE NOTIFICATION FORM THAT SHALL ELICIT:
  (A) THE MOST RECENT WHOLESALE ACQUISITION COST (WAC) OF THE DRUG PRIOR
TO  AN  INCREASE EQUAL TO OR GREATER THAN ONE HUNDRED PERCENT AT ANY ONE
TIME OR IN THE AGGREGATE IN ANY TWELVE MONTH PERIOD  IN  EITHER  PRICING
MEASURE.  FOR  THE  PURPOSES  OF THIS SECTION WHOLESALE ACQUISITION COST

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08165-01-7

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