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Bill aimed at increasing drug price transparency passes House
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SANTA FE — The state House wants to diagnose what’s causing increasing prescription drug prices.
The House voted unanimously Wednesday for a bill geared toward bringing transparency to prescription drug pricing. Similar measures have been adopted in almost two dozen other states, said Barbara Webber, executive director of Health Action New Mexico.
The reporting requirements would apply to drugs that cost more than $400 for a 30-day supply and are either a brand-name drug that has increased in price by 10% in the past year or 16% in the past two years, or a generic drug or alternative that has increased by 30% or more in the past year.
For each medication that falls into that category, drug manufacturers would have to report to the state Office of Superintendent of Insurance the original cost of the product when approved by the U.S. Food and Drug Administration, how much the price has increased over the past five years, manufacturing, marketing and distribution costs, and their profit from the product.
They would also have to provide a document detailing if the increase in price was because of a change or improvement to the drug.
The Superintendent of Insurance would use the data collected to recommend policies to lower drug costs.
“The purpose of collecting this data is to help not only the Legislature, but the community itself, to see what is causing the increase in the prescription drugs that we are seeing,” said bill sponsor Rep. Pamelya Herndon, D-Albuquerque.
