Assembly Bill A741

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    741
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  D. ROSENTHAL,  EICHENSTEIN, COLTON, DICKENS,
   SEAWRIGHT, CRUZ, COOK, O'DONNELL, SIMON, McDONOUGH, MONTESANO, HUNTER,
   MAGNARELLI -- Multi-Sponsored by -- M. of A. SALKA --  read  once  and
   referred to the Committee on Health

 AN  ACT  to  amend  the  public health law, in relation to requiring the
   commissioner of  health  to  include  in  annual  reports  information
   regarding the cost and increase in cost of certain prescription drugs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 277 of the public health  law,  as
 amended  by  section  18 of part A of chapter 56 of the laws of 2013, is
 amended to read as follows:
   1. The commissioner, in consultation with the drug utilization  review
 board,  shall  undertake  periodic  reviews,  at  least annually, of the
 preferred drug program which shall include consideration of:
   (a) the volume of prior authorizations being handled,  including  data
 on  the  number  and characteristics of prior authorization requests for
 particular prescription drugs;
   (b) the quality of the program's responsiveness, including the quality
 of the administrator's responsiveness;
   (c) complaints received from patients and providers;
   (d) (I) A LIST OF THE  TEN  PRESCRIPTION  DRUGS  ON  WHICH  THE  STATE
 EXPENDS  THE MOST MONEY AND FOR WHICH THE WHOLESALE ACQUISITION COST HAS
 INCREASED BY FIFTY PERCENT OR MORE OVER THE PAST FIVE YEARS  OR  BY  TEN
 PERCENT  OR  MORE  DURING  THE  PREVIOUS CALENDAR YEAR. THE COMMISSIONER
 SHALL: INCLUDE THE PERCENTAGE OF THE WHOLESALE ACQUISITION COST INCREASE
 FOR EACH DRUG ON THE LIST; RANK THE DRUGS ON THE LIST  FROM  THOSE  WITH
 THE  LARGEST  INCREASE  IN  WHOLESALE ACQUISITION COST TO THOSE WITH THE
 SMALLEST INCREASE; INDICATE WHETHER EACH DRUG WAS INCLUDED ON  THE  LIST
 BASED ON ITS COST INCREASE OVER THE PAST FIVE YEARS OR DURING THE PREVI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD05122-01-1

 A. 741                              2
 
 OUS  CALENDAR  YEAR,  OR BOTH; AND PROVIDE THE STATE'S TOTAL EXPENDITURE
 FOR EACH DRUG ON THE LIST DURING THE MOST RECENT CALENDAR YEAR; AND
   (II)  A  LIST OF THE TEN PRESCRIPTION DRUGS ON WHICH THE STATE EXPENDS
 THE MOST MONEY AND FOR WHICH THE COST TO THE STATE, NET OF  REBATES  AND
 OTHER PRICE CONCESSIONS, HAS INCREASED BY FIFTY PERCENT OR MORE OVER THE
 PAST  FIVE  YEARS OR BY TEN PERCENT OR MORE DURING THE PREVIOUS CALENDAR
 YEAR. THE COMMISSIONER SHALL RANK THE DRUGS ON THE LIST FROM THOSE  WITH
 THE  GREATEST  INCREASE  IN NET COST TO THOSE WITH THE SMALLEST INCREASE
 AND INDICATE WHETHER EACH DRUG WAS INCLUDED ON THE  LIST  BASED  ON  ITS
 COST  INCREASE  OVER THE PAST FIVE YEARS OR DURING THE PREVIOUS CALENDAR
 YEAR, OR BOTH; AND
   (III) A MANUFACTURER OF A PRESCRIPTION DRUG THAT APPEARS ON A LIST  AS
 DESCRIBED  IN SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH SHALL SUBMIT TO
 THE COMMISSIONER A REPORT THAT EXPLAINS: (A) ALL MATERIAL  FACTORS  THAT
 HAVE  CONTRIBUTED  TO  THE  WHOLESALE ACQUISITION COST INCREASE FOR SUCH
 DRUG INCLUDING BUT NOT LIMITED TO  MATERIALS  AND  MANUFACTURING  COSTS,
 SPENDING  ON  RESEARCH  AND DEVELOPMENT COSTS, SPENDING ON MARKETING AND
 ADVERTISING, AND  SPENDING  ON  PATIENT  ASSISTANCE  PROGRAMS;  (B)  THE
 PERCENTAGE OF THE TOTAL WHOLESALE ACQUISITION COST INCREASE ATTRIBUTABLE
 TO  EACH  FACTOR;  (C)  AN  EXPLANATION  OF  THE  ROLE OF EACH FACTOR IN
 CONTRIBUTING TO THE WHOLESALE ACQUISITION COST INCREASE; (D)  THE  TOTAL
 REVENUE  AND  THE  NET  PROFIT  OF  THE MANUFACTURER FOR THE MOST RECENT
 CALENDAR YEAR; AND  (E)  ANY  ADDITIONAL  INFORMATION  THE  MANUFACTURER
 CHOOSES TO PROVIDE RELATED TO DRUG PRICING DECISIONS;
   (E)  the savings attributable to the state, and to each county and the
 city of New York, due to the provisions of this article;
   [(e)] (F) the aggregate amount of supplemental rebates received in the
 previous fiscal year and in the current fiscal year, to date;  and  such
 amounts are to be broken out by fiscal year and by month;
   [(f)]  (G)  the  education and outreach program established by section
 two hundred seventy-six of this [article] TITLE.
   § 2. This act shall take effect immediately.