California Senate passes drug pricing transparency bill

On Wednesday, the California Senate passed by a vote of 31-8 Senate Bill 17, which would require drug makers to disclose and justify prescription drug price increases.

The bill would require a manufacturer of a prescription drug with a wholesale acquisition cost (WAC) of more than $40 for a course of therapy to notify purchasers 60 days prior to an increase of over 16% in a two-year period. Manufacturers would also have to provide information justifying the increase. The bill also seeks to require health plans to report the proportion of health insurance spent on prescription drugs...