senate Bill S4536

2021-2022 Legislative Session

Prohibits price gouging by manufacturers of prescription drugs

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Health 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
Feb 05, 2021 referred to health

S4536 (ACTIVE) - Details

Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Add §278-a, Pub Health L; add §396-rrr, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2015-2016: S7022
2017-2018: S2544
2019-2020: S1798

S4536 (ACTIVE) - Summary

Prohibits price gouging by manufacturers of prescription drugs.

S4536 (ACTIVE) - Sponsor Memo

S4536 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4536
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2021
                                ___________
 
 Introduced  by  Sen.  RIVERA -- 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:
   §  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.

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