S T A T E O F N E W Y O R K
________________________________________________________________________
8836
I N A S S E M B L Y
January 18, 2024
___________
Introduced by M. of A. BERGER -- 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-
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06654-01-3
A. 8836 2
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.