NY State Senate Bill S7499A

Archive: Last Bill Status - Passed Senate

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

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Actions

view actions (11)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 24, 2022	referred to health delivered to assembly passed senate
May 17, 2022	advanced to third reading amended 7499b
May 16, 2022	2nd report cal.
May 11, 2022	1st report cal.1338
May 05, 2022	print number 7499a
May 05, 2022	amend (t) and recommit to health
Jan 05, 2022	referred to health
Nov 03, 2021	referred to rules

Votes

view votes

May 24, 2022 - floor Vote

S7499B

floor

Aye

Nay

Absent

Excused

Abstained

May 9, 2022 - Health committee Vote

S7499A

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

B (Active)

Original

B (Active)

S7499 - Details

See Assembly Version of this Bill:: A663
Current Committee:: Assembly Health
Law Section:: Insurance Law
Laws Affected:: Add §111-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5942, A8253
2023-2024: S599, A1707

S7499 - Summary

Requires certain manufacturers of prescription drugs to notify the drug utilization review board of the proposed increase of the wholesale acquisition cost of such prescription drugs.

S7499 - Sponsor Memo

 
BILL NUMBER: S7499

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the public health law, in relation to requiring certain
manufacturers of prescription drugs to notify the drug utilization
review board of the proposed increase of the wholesale acquisition cost
of such prescription drugs

 
PURPOSE:

This bill would require manufacturers to provide at least 60 day notice
Of their intent to raise wholesale prescription drug costs to the drug
utilization review board if the increase is 10% or more of the total
cost of the drug.

 
SUMMARY OF PROVISIONS:

Section 1 amends the public health law to add new section 277-a relating
to notification of prescription drug price increases by manufacturers.

Section 2 provides the effective date.

 
JUSTIFICATION:

This legislation will provide early warning of increases in the price of
prescription drugs. Breakthrough medications offer tremendous clinical
benefits for patients, but they should not be a blank check.  The prices
charged for prescription drugs are a major threat to keeping health care
affordable for New York employers and consumers.  Exorbitant increases
in prescription drug prices have been consistent across all segments of
the pharmaceutical industry. For example, in 2016 Mylan increased the
price for a package of two EpiPen Auto-Injectors from just over $100 to
more than $600 without any warning or public justification. Since the
start of 2019, more than two dozen drug makers have raised the prices on
a wide array of drugs by double-digit percentages.

The bill will not prohibit manufacturers from increasing prices, but
would require notice of price increases, enhancing transparency of
prescription drug costs. Providing notice before a price increase of
more than 10 percent takes effect is important so that consumers,
employers, providers, health plans and the state are prepared and can
take steps before the increase is implemented. It would also be impor-
tant for the policymakers to be provided with the rationale for the
increase including whether the price increases will benefit the public
to help fund research and development that improve patient care or will
it merely result in increasing the cost of health care.

 
LEGISLATIVE HISTORY:

2019 & 2020 S5942 / A8253 - Referred to Health Committees in both hous-
es.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S7499 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7499
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             November 3, 2021
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public health law, in relation to requiring  certain
   manufacturers  of  prescription  drugs  to notify the drug utilization
   review board of the proposed increase  of  the  wholesale  acquisition
   cost of such 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
 277-a to read as follows:
   § 277-A. NOTIFICATION OF PRESCRIPTION DRUG PRICE INCREASES BY MANUFAC-
 TURERS.  1. THIS SECTION SHALL APPLY TO A MANUFACTURER OF A PRESCRIPTION
 DRUG THAT IS PURCHASED OR REIMBURSED BY ANY OF THE FOLLOWING:
   (A) AN INSURANCE COMPANY AUTHORIZED IN THIS STATE  TO  WRITE  ACCIDENT
 AND  HEALTH  INSURANCE,  A  COMPANY ORGANIZED PURSUANT TO ARTICLE FORTY-
 THREE OF THE INSURANCE LAW, A MUNICIPAL COOPERATIVE HEALTH BENEFIT  PLAN
 ESTABLISHED  PURSUANT  TO  ARTICLE  FORTY-SEVEN OF THE INSURANCE LAW, AN
 ORGANIZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF  THIS  CHAPTER,
 AN  INSTITUTION  OF  HIGHER  EDUCATION CERTIFIED PURSUANT TO SECTION ONE
 THOUSAND ONE HUNDRED TWENTY-FOUR OF THE INSURANCE LAW, OR THE  NEW  YORK
 STATE  HEALTH  INSURANCE  PLAN ESTABLISHED PURSUANT TO ARTICLE ELEVEN OF
 THE CIVIL SERVICE LAW; OR
   (B) A PHARMACY BENEFIT MANAGER, INCLUDING AN ENTITY THAT  DIRECTLY  OR
 THROUGH AN INTERMEDIARY, MANAGES THE PRESCRIPTION DRUG COVERAGE PROVIDED
 BY  A  HEALTH INSURER UNDER A CONTRACT OR POLICY DELIVERED OR ISSUED FOR
 DELIVERY IN THIS STATE OR A HEALTH PLAN SUBJECT TO SECTION THREE HUNDRED
 SIXTY-FOUR-J OF THE SOCIAL SERVICES LAW, INCLUDING  THE  PROCESSING  AND
 PAYMENT OF CLAIMS FOR PRESCRIPTION DRUGS, THE PERFORMANCE OF DRUG UTILI-
 ZATION  REVIEW, THE PROCESSING OF DRUG PRIOR AUTHORIZATION REQUESTS, THE
 ADJUDICATION OF APPEALS  OR  GRIEVANCES  RELATED  TO  PRESCRIPTION  DRUG
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05130-01-1
 S. 7499                             2

 
 COVERAGE,  CONTRACTING WITH NETWORK PHARMACIES, AND CONTROLLING THE COST
 OF COVERED PRESCRIPTION DRUGS.
   2. (A) A MANUFACTURER OF A PRESCRIPTION DRUG WITH A WHOLESALE ACQUISI-
 TION COST OF MORE THAN FORTY DOLLARS FOR A COURSE OF THERAPY SHALL NOTI-
 FY  THE  DRUG  UTILIZATION REVIEW BOARD IF THE INCREASE IN THE WHOLESALE
 ACQUISITION COST OF SUCH PRESCRIPTION DRUG IS  MORE  THAN  TEN  PERCENT,
 INCLUDING  THE  PROPOSED  INCREASE  AND  THE  CUMULATIVE  INCREASES THAT
 OCCURRED WITHIN THE PREVIOUS TWO CALENDAR YEARS  PRIOR  TO  THE  CURRENT
 YEAR.  FOR PURPOSES OF THIS SECTION, A "COURSE OF THERAPY" IS DEFINED AS
 EITHER OF THE FOLLOWING:
   (I) THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG PURSUANT
 TO ITS PRESCRIBING LABEL AS APPROVED BY THE FEDERAL FOOD AND DRUG ADMIN-
 ISTRATION FOR THIRTY DAYS; OR
   (II) THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG  PURSU-
 ANT  TO  ITS  PRESCRIBING LABEL AS APPROVED BY THE FEDERAL FOOD AND DRUG
 ADMINISTRATION FOR A NORMAL COURSE OF TREATMENT THAT IS LESS THAN THIRTY
 DAYS.
   (B) THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL  BE
 PROVIDED  IN WRITING TO THE DRUG UTILIZATION REVIEW BOARD AT LEAST SIXTY
 DAYS PRIOR TO THE PLANNED EFFECTIVE DATE OF THE INCREASE.
   (C) (I) THE NOTICE REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL
 INCLUDE THE DATE OF THE INCREASE, THE CURRENT WHOLESALE ACQUISITION COST
 OF THE PRESCRIPTION DRUG, AND THE DOLLAR AMOUNT OF THE  FUTURE  INCREASE
 IN THE WHOLESALE ACQUISITION COST OF THE PRESCRIPTION DRUG.
   (II)  THE  NOTICE  REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL
 INCLUDE A STATEMENT REGARDING WHETHER A CHANGE  OR  IMPROVEMENT  IN  THE
 DRUG  NECESSITATES  THE  PRICE  INCREASE.  IF SO, THE MANUFACTURER SHALL
 DESCRIBE THE CHANGE OR IMPROVEMENT.
   (D) IN THE EVENT THAT A MANUFACTURER OF A PRESCRIPTION DRUG SUBJECT TO
 THIS SECTION DOES NOT REPORT THE INFORMATION REQUIRED IN  PARAGRAPH  (A)
 OF  THIS  SUBDIVISION,  THE  COMMISSIONER  IS AUTHORIZED TO LEVY A CIVIL
 PENALTY, AFTER NOTICE AND A HEARING, AGAINST SUCH MANUFACTURER OF UP  TO
 ONE  THOUSAND  DOLLARS  PER DAY FOR EVERY DAY AFTER THE REPORTING PERIOD
 DESCRIBED IN THIS SECTION THAT THE REQUIRED INFORMATION IS NOT REPORTED.
   § 2. This act shall take effect immediately.

Co-Sponsors

S7499A - Details

See Assembly Version of this Bill:: A663
Current Committee:: Assembly Health
Law Section:: Insurance Law
Laws Affected:: Add §111-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5942, A8253
2023-2024: S599, A1707

S7499A - Summary

Requires certain manufacturers of prescription drugs to notify the drug utilization review board of the proposed increase of the wholesale acquisition cost of such prescription drugs.

S7499A - Sponsor Memo

 
BILL NUMBER: S7499A

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring certain
manufacturers of prescription drugs to notify the superintendant of any
proposed increase of the wholesale acquisition cost of such prescription
drugs

 
PURPOSE:

This bill would require manufacturers to provide at least 60 day notice
Of their intent to raise wholesale prescription drug costs to the
Department of Financial Services if the increase is 10% or more of the
total cost of the drug.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law to add new section 111-a relating to
notification of prescription drug price increases by manufacturers.

Section 2 provides the effective date.

 
JUSTIFICATION:

This legislation will provide early warning of increases in the price of
prescription drugs. Breakthrough medications offer tremendous clinical
benefits for patients, but they should not be a blank check.  The prices
charged for prescription drugs are a major threat to keeping health care
affordable for New York employers and consumers.  Exorbitant increases
in prescription drug prices have been consistent across all segments of
the pharmaceutical industry. For example, in 2016 Mylan increased the
price for a package of two EpiPen Auto-Injectors from just over $100 to
more than $600 without any warning or public justification. Since the
start of 2019, more than two dozen drug makers have raised the prices on
a wide array of drugs by double-digit percentages.

The bill will not prohibit manufacturers from increasing prices, but
would require notice of price increases, enhancing transparency of
prescription drug costs. Providing notice before a price increase of
more than 10 percent takes effect is important so that consumers,
employers, providers, health plans and the state are prepared and can
take steps before the increase is implemented. It would also be impor-
tant for the policymakers to be provided with the rationale for the
increase including whether the price increases will benefit the public
to help fund research and development that improve patient care or will
it merely result in increasing the cost of health care.

 
AMENDED BILL:

The A-print of the bill changed the reviewing agency from the Drug
Utilization Board to the Department of Financial Services, which is more
appropriately suited to carry out the obligations imposed by this legis-
lation. This necessitated a change from amending the public health law
as in the original version to amending the insurance law.

 
LEGISLATIVE HISTORY:

2019 & 2020 S5942 / A8253 - Referred to Health Committees in both hous-
es.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S7499A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7499--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             November 3, 2021
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee  on  Health in accordance with Senate Rule 6, sec. 8 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 AN  ACT  to  amend  the  insurance law, in relation to requiring certain
   manufacturers of prescription drugs to notify  the  superintendant  of
   any  proposed  increase  of  the  wholesale  acquisition  cost of such
   prescription drugs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The insurance law is amended by adding a new section 111-a
 to read as follows:
   § 111-A. NOTIFICATION OF PRESCRIPTION DRUG PRICE INCREASES BY MANUFAC-
 TURERS. (A) THIS SECTION SHALL APPLY TO A MANUFACTURER OF A PRESCRIPTION
 DRUG THAT IS PURCHASED OR REIMBURSED IN THIS STATE BY ANY OF THE FOLLOW-
 ING:
   (1) AN INSURANCE COMPANY AUTHORIZED IN THIS STATE  TO  WRITE  ACCIDENT
 AND  HEALTH  INSURANCE,  A  COMPANY ORGANIZED PURSUANT TO ARTICLE FORTY-
 THREE OF THIS CHAPTER,  A  MUNICIPAL  COOPERATIVE  HEALTH  BENEFIT  PLAN
 ESTABLISHED  PURSUANT  TO ARTICLE FORTY-SEVEN OF THIS CHAPTER, AN ORGAN-
 IZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF  THE  PUBLIC  HEALTH
 LAW,  AN  INSTITUTION  OF HIGHER EDUCATION CERTIFIED PURSUANT TO SECTION
 ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER, OR  THE  NEW  YORK
 STATE  HEALTH  INSURANCE  PLAN ESTABLISHED PURSUANT TO ARTICLE ELEVEN OF
 THE CIVIL SERVICE LAW; OR
   (2) A PHARMACY BENEFIT MANAGER, INCLUDING AN ENTITY THAT  DIRECTLY  OR
 THROUGH AN INTERMEDIARY, MANAGES THE PRESCRIPTION DRUG COVERAGE PROVIDED
 BY  A  HEALTH INSURER UNDER A CONTRACT OR POLICY DELIVERED OR ISSUED FOR
 DELIVERY IN THIS STATE OR A HEALTH PLAN SUBJECT TO SECTION THREE HUNDRED
 SIXTY-FOUR-J OF THE SOCIAL SERVICES LAW, INCLUDING  THE  PROCESSING  AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05130-02-2

 S. 7499--A                          2
 
 PAYMENT OF CLAIMS FOR PRESCRIPTION DRUGS, THE PERFORMANCE OF DRUG UTILI-
 ZATION  REVIEW, THE PROCESSING OF DRUG PRIOR AUTHORIZATION REQUESTS, THE
 ADJUDICATION OF APPEALS  OR  GRIEVANCES  RELATED  TO  PRESCRIPTION  DRUG
 COVERAGE,  CONTRACTING WITH NETWORK PHARMACIES, AND CONTROLLING THE COST
 OF COVERED PRESCRIPTION DRUGS.
   (B) (1) A MANUFACTURER OF A PRESCRIPTION DRUG WITH A WHOLESALE  ACQUI-
 SITION  COST  OF  MORE  THAN FORTY DOLLARS FOR A COURSE OF THERAPY SHALL
 NOTIFY THE SUPERINTENDENT, HIS OR HER DEPUTY OR OTHER OFFICER DESIGNATED
 BY THE SUPERINTENDENT, IF THE INCREASE IN THE WHOLESALE ACQUISITION COST
 OF SUCH PRESCRIPTION DRUG  IS  MORE  THAN  TEN  PERCENT,  INCLUDING  THE
 PROPOSED  INCREASE AND THE CUMULATIVE INCREASES THAT OCCURRED WITHIN THE
 PREVIOUS TWELVE MONTHS PRIOR TO THE CURRENT YEAR. FOR PURPOSES  OF  THIS
 SECTION, A "COURSE OF THERAPY" IS DEFINED AS EITHER OF THE FOLLOWING:
   (I) THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG PURSUANT
 TO ITS PRESCRIBING LABEL AS APPROVED BY THE FEDERAL FOOD AND DRUG ADMIN-
 ISTRATION FOR THIRTY DAYS; OR
   (II)  THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG PURSU-
 ANT TO ITS PRESCRIBING LABEL AS APPROVED BY THE FEDERAL  FOOD  AND  DRUG
 ADMINISTRATION FOR A NORMAL COURSE OF TREATMENT THAT IS LESS THAN THIRTY
 DAYS.
   (2)  (I) THE NOTICE REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION SHALL
 BE PROVIDED IN WRITING TO THE SUPERINTENDENT AT LEAST SIXTY  DAYS  PRIOR
 TO THE PLANNED EFFECTIVE DATE OF THE INCREASE.
   (II) THE SUPERINTENDENT SHALL FORTHWITH PUBLISH THE NOTICE REQUIRED BY
 PARAGRAPH  (A)  OF  THIS  SUBDIVISION  ON  THE  DEPARTMENT  OF FINANCIAL
 SERVICES WEBSITE WITHIN FIVE DAYS OF ITS RECEIPT.
   (3) (I) THE NOTICE REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION  SHALL
 INCLUDE THE DATE OF THE INCREASE, THE CURRENT WHOLESALE ACQUISITION COST
 OF  THE  PRESCRIPTION DRUG, AND THE DOLLAR AMOUNT OF THE FUTURE INCREASE
 IN THE WHOLESALE ACQUISITION COST OF THE PRESCRIPTION DRUG.
   (II) THE NOTICE REQUIRED BY PARAGRAPH (1)  OF  THIS  SUBSECTION  SHALL
 INCLUDE  A  STATEMENT  REGARDING  WHETHER A CHANGE OR IMPROVEMENT IN THE
 DRUG NECESSITATES THE PRICE INCREASE.  IF  SO,  THE  MANUFACTURER  SHALL
 DESCRIBE THE CHANGE OR IMPROVEMENT.
   (4)  THE  SUPERINTENDENT  SHALL  DETERMINE  THE CONFIDENTIALITY OF ANY
 SUPPORTING DOCUMENTATION A MANUFACTURER DESIGNATES AS A TRADE SECRET AND
 THAT SUCH MANUFACTURER MAY SUBMIT WITH THE REQUIRED NOTICE. SHOULD  SUCH
 SUPPORTING  DOCUMENTATION  BE DEEMED CONFIDENTIAL BY THE SUPERINTENDENT,
 THE SUPPORTING DOCUMENTATION SHALL NOT BE SUBJECT TO  DISCLOSURE  EXCEPT
 WHERE  AND  AS  THE  SUPERINTENDENT DETERMINES THAT DISCLOSURE IS IN THE
 PUBLIC INTEREST.
   (5) IN THE EVENT THAT A MANUFACTURER OF A PRESCRIPTION DRUG SUBJECT TO
 THIS SECTION DOES NOT REPORT THE INFORMATION REQUIRED IN  PARAGRAPH  (1)
 OF  THIS  SUBSECTION,  THE  SUPERINTENDENT  IS  AUTHORIZED TO IMPOSE ANY
 PENALTY OR REMEDY AUTHORIZED BY THIS CHAPTER, AFTER NOTICE AND  A  HEAR-
 ING, AGAINST SUCH MANUFACTURER OF UP TO TEN THOUSAND DOLLARS PER DAY FOR
 EVERY  DAY AFTER THE REPORTING PERIOD DESCRIBED IN THIS SECTION THAT THE
 REQUIRED INFORMATION IS NOT REPORTED.
   § 2. This act shall take effect immediately.

Co-Sponsors

S7499B (ACTIVE) - Details

See Assembly Version of this Bill:: A663
Current Committee:: Assembly Health
Law Section:: Insurance Law
Laws Affected:: Add §111-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5942, A8253
2023-2024: S599, A1707

S7499B (ACTIVE) - Summary

Requires certain manufacturers of prescription drugs to notify the drug utilization review board of the proposed increase of the wholesale acquisition cost of such prescription drugs.

S7499B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S7499B

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring certain
manufacturers of prescription drugs to notify the superintendant of any
proposed increase of the wholesale acquisition cost of such prescription
drugs

 
PURPOSE:

This bill would require manufacturers to provide at least 60 day notice
Of their intent to raise wholesale prescription drug costs to the
Department of Financial Services if the increase is 10% or more of the
total cost of the drug.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law to add new section 111-a relating to
notification of prescription drug price increases by manufacturers.

Section 2 provides the effective date.

 
JUSTIFICATION:

This legislation will provide early warning of increases in the price of
prescription drugs. Breakthrough medications offer tremendous clinical
benefits for patients, but they should not be a blank check.  The prices
charged for prescription drugs are a major threat to keeping health care
affordable for New York employers and consumers.  Exorbitant increases
in prescription drug prices have been consistent across all segments of
the pharmaceutical industry. For example, in 2016 Mylan increased the
price for a package of two EpiPen Auto-Injectors from just over $100 to
more than $600 without any warning or public justification. Since the
start of 2019, more than two dozen drug makers have raised the prices on
a wide array of drugs by double-digit percentages.

The bill will not prohibit manufacturers from increasing prices, but
would require notice of price increases, enhancing transparency of
prescription drug costs. Providing notice before a price increase of
more than 10 percent takes effect is important so that consumers,
employers, providers, health plans and the state are prepared and can
take steps before. the increase is implemented. It would also be impor-
tant for the policymakers to be provided with the rationale for the
increase including whether the price increases will benefit the public
to help fund research and development that improve patient care or will
it merely result in increasing the cost of health care.

 
AMENDED BILL:

The B-print of the bill makes several minor clarifying changes and
establishes a clear process by which alleged "trade secret" information
must be disclosed to the Department but is only released publicly in
aggregate form. The B-print also modifies the penalty that, can be
imposed by DFS on drug manufacturing companies found to have failed to
report the required information to the Department.

 
LEGISLATIVE HISTORY:
2019 & 2020 S5942 / A8253 - Referred to Health Committees in both hous-
es.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S7499B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7499--B
     Cal. No. 1338
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             November 3, 2021
                                ___________
 
 Introduced  by Sens. SALAZAR, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Rules --  recommitted
   to the Committee on Health in accordance with Senate Rule 6, sec. 8 --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- reported favorably from said  commit-
   tee,  ordered  to  first  and second report, amended on second report,
   ordered to a third reading, and to be reprinted as amended,  retaining
   its place in the order of third reading
 
 AN  ACT  to  amend  the  insurance law, in relation to requiring certain
   manufacturers of prescription drugs to notify  the  superintendant  of
   any  proposed  increase  of  the  wholesale  acquisition  cost of such
   prescription drugs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. The insurance law is amended by adding a new section 111-a
 to read as follows:
   § 111-A. NOTIFICATION OF PRESCRIPTION DRUG PRICE INCREASES BY MANUFAC-
 TURERS. (A) THIS SECTION SHALL APPLY TO A MANUFACTURER OF A PRESCRIPTION
 DRUG THAT IS PURCHASED OR REIMBURSED IN THIS STATE BY ANY OF THE FOLLOW-
 ING:
   (1) AN INSURANCE COMPANY AUTHORIZED IN THIS STATE  TO  WRITE  ACCIDENT
 AND  HEALTH  INSURANCE,  A  COMPANY ORGANIZED PURSUANT TO ARTICLE FORTY-
 THREE OF THIS CHAPTER,  A  MUNICIPAL  COOPERATIVE  HEALTH  BENEFIT  PLAN
 ESTABLISHED  PURSUANT  TO ARTICLE FORTY-SEVEN OF THIS CHAPTER, AN ORGAN-
 IZATION CERTIFIED PURSUANT TO ARTICLE FORTY-FOUR OF  THE  PUBLIC  HEALTH
 LAW,  AN  INSTITUTION  OF HIGHER EDUCATION CERTIFIED PURSUANT TO SECTION
 ONE THOUSAND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER, OR  THE  NEW  YORK
 STATE  HEALTH  INSURANCE  PLAN ESTABLISHED PURSUANT TO ARTICLE ELEVEN OF
 THE CIVIL SERVICE LAW; OR
   (2) A PHARMACY BENEFIT MANAGER, INCLUDING AN ENTITY THAT  DIRECTLY  OR
 THROUGH AN INTERMEDIARY, MANAGES THE PRESCRIPTION DRUG COVERAGE PROVIDED
 BY  A  HEALTH INSURER UNDER A CONTRACT OR POLICY DELIVERED OR ISSUED FOR
 DELIVERY IN THIS STATE OR A HEALTH PLAN SUBJECT TO SECTION THREE HUNDRED
 SIXTY-FOUR-J OF THE SOCIAL SERVICES LAW, INCLUDING  THE  PROCESSING  AND

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05130-04-2
 S. 7499--B                          2
 
 PAYMENT OF CLAIMS FOR PRESCRIPTION DRUGS, THE PERFORMANCE OF DRUG UTILI-
 ZATION  REVIEW, THE PROCESSING OF DRUG PRIOR AUTHORIZATION REQUESTS, THE
 ADJUDICATION OF APPEALS  OR  GRIEVANCES  RELATED  TO  PRESCRIPTION  DRUG
 COVERAGE,  CONTRACTING WITH NETWORK PHARMACIES, AND CONTROLLING THE COST
 OF COVERED PRESCRIPTION DRUGS.
   (B) (1) A MANUFACTURER OF A PRESCRIPTION DRUG WITH A WHOLESALE  ACQUI-
 SITION  COST  OF  MORE  THAN FORTY DOLLARS FOR A COURSE OF THERAPY SHALL
 NOTIFY THE SUPERINTENDENT, HIS OR HER DEPUTY OR OTHER OFFICER DESIGNATED
 BY THE SUPERINTENDENT, IF THE INCREASE IN THE WHOLESALE ACQUISITION COST
 OF SUCH PRESCRIPTION DRUG  IS  MORE  THAN  TEN  PERCENT,  INCLUDING  THE
 PROPOSED  INCREASE AND THE CUMULATIVE INCREASES THAT OCCURRED WITHIN THE
 PREVIOUS TWENTY-FOUR MONTHS. FOR PURPOSES OF THIS SECTION, A "COURSE  OF
 THERAPY" IS DEFINED AS EITHER OF THE FOLLOWING:
   (I) THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG PURSUANT
 TO ITS PRESCRIBING LABEL AS APPROVED BY THE FEDERAL FOOD AND DRUG ADMIN-
 ISTRATION FOR THIRTY DAYS; OR
   (II)  THE RECOMMENDED DAILY DOSAGE UNITS OF A PRESCRIPTION DRUG PURSU-
 ANT TO ITS PRESCRIBING LABEL AS APPROVED BY THE FEDERAL  FOOD  AND  DRUG
 ADMINISTRATION FOR A NORMAL COURSE OF TREATMENT THAT IS LESS THAN THIRTY
 DAYS.
   (2)  (I) THE NOTICE REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION SHALL
 BE PROVIDED IN WRITING TO THE SUPERINTENDENT AT LEAST SIXTY  DAYS  PRIOR
 TO  THE  PLANNED  EFFECTIVE  DATE  OF THE INCREASE AND SHALL INCLUDE THE
 PROPOSED INCREASE AND THE CUMULATIVE INCREASES THAT OCCURRED WITHIN  THE
 PREVIOUS TWENTY-FOUR MONTHS.
   (II) THE SUPERINTENDENT SHALL FORTHWITH PUBLISH THE NOTICE REQUIRED BY
 PARAGRAPH  (A)  OF  THIS  SUBDIVISION  ON  THE  DEPARTMENT  OF FINANCIAL
 SERVICES WEBSITE WITHIN FIVE DAYS OF ITS RECEIPT.
   (3) (I) THE NOTICE REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION  SHALL
 INCLUDE THE DATE OF THE INCREASE, THE CURRENT WHOLESALE ACQUISITION COST
 OF  THE  PRESCRIPTION DRUG, AND THE DOLLAR AMOUNT OF THE FUTURE INCREASE
 IN THE WHOLESALE ACQUISITION COST OF THE PRESCRIPTION DRUG.
   (II) THE NOTICE REQUIRED BY PARAGRAPH (1)  OF  THIS  SUBSECTION  SHALL
 INCLUDE  A  STATEMENT  REGARDING  WHETHER A CHANGE OR IMPROVEMENT IN THE
 DRUG NECESSITATES THE PRICE INCREASE.  IF  SO,  THE  MANUFACTURER  SHALL
 DESCRIBE THE CHANGE OR IMPROVEMENT.
   (4)  INFORMATION  SUPPLIED  BY A MANUFACTURER PURSUANT TO THIS SECTION
 THAT THE MANUFACTURER HAS DESIGNATED AS A TRADE SECRET SHALL BE  CONSID-
 ERED CONFIDENTIAL AND A TRADE SECRET AND SHALL NOT BE DISCLOSED DIRECTLY
 OR  INDIRECTLY  BY  THE  SUPERINTENDENT.  NOTWITHSTANDING  THE FOREGOING
 SENTENCE, THE SUPERINTENDENT SHALL BE PERMITTED TO DISCLOSE  INFORMATION
 IN AN AGGREGATED FORMAT IF SUCH AGGREGATE INFORMATION CANNOT DIRECTLY OR
 INDIRECTLY  BE  USED  TO  IDENTIFY TRADE SECRET INFORMATION RELATED TO A
 SPECIFIC MANUFACTURER OR THE MANUFACTURER'S PRESCRIPTION DRUG, INCLUDING
 BUT NOT LIMITED TO ANY INFORMATION RELATED TO PRICING FOR  THE  MANUFAC-
 TURER'S PRESCRIPTION DRUG THAT HAS BEEN DESIGNATED AS A TRADE SECRET.
   (5) IN THE EVENT THAT A MANUFACTURER OF A PRESCRIPTION DRUG SUBJECT TO
 THIS  SECTION  DOES NOT REPORT THE INFORMATION REQUIRED IN PARAGRAPH (1)
 OF THIS SUBSECTION, THE  SUPERINTENDENT  IS  AUTHORIZED  TO  IMPOSE  ANY
 PENALTY  OR  REMEDY AUTHORIZED BY THIS CHAPTER, AFTER NOTICE AND A HEAR-
 ING, AGAINST SUCH MANUFACTURER OF UP TO FIVE THOUSAND  DOLLARS  PER  DAY
 FOR  EVERY DAY AFTER THE REPORTING PERIOD DESCRIBED IN THIS SECTION THAT
 THE REQUIRED INFORMATION IS NOT REPORTED.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S7499A

Sponsored By

Archive: Last Bill Status - Passed Senate

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Votes

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

May 9, 2022 - Health committee Vote

Health Committee Vote: May 9, 2022

Bill Amendments

S7499 - Details

S7499 - Summary

S7499 - Sponsor Memo

S7499 - Bill Text download pdf

Co-Sponsors

S7499A - Details

S7499A - Summary

S7499A - Sponsor Memo

S7499A - Bill Text download pdf

Co-Sponsors

S7499B (ACTIVE) - Details

S7499B (ACTIVE) - Summary

S7499B (ACTIVE) - Sponsor Memo

S7499B (ACTIVE) - Bill Text download pdf

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senate Bill S7499A

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Sponsored By

Julia Salazar

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

May 24, 2022 - floor Vote

Floor Vote: May 24, 2022

May 9, 2022 - Health committee Vote

Health Committee Vote: May 9, 2022

Bill Amendments

S7499 - Details

S7499 - Summary

S7499 - Sponsor Memo

S7499 - Bill Text download pdf

Co-Sponsors

Rachel May

S7499A - Details

S7499A - Summary

S7499A - Sponsor Memo

S7499A - Bill Text download pdf

Co-Sponsors

Rachel May

S7499B (ACTIVE) - Details

S7499B (ACTIVE) - Summary

S7499B (ACTIVE) - Sponsor Memo

S7499B (ACTIVE) - Bill Text download pdf

Comments