California Gov. Jerry Brown is expected to sign a bill into law Monday that will make drug prices more transparent in the state, according to the Mercury News.
The bill — authored by Sen. Ed Hernandez, D-Calif. — requires pharmaceutical companies to notify health insurers and government health plans, at least 60 days in advance, of prescription drug price increases that would exceed 16 percent over a two-year period. It would also require drugmakers to explain why the increase is necessary.
"...The public is screaming for some kind of relief from the high cost of prescription drugs — not just in California, but across the country,’’ Mr. Hernandez told Mercury News. He added that the bill could "set a precedent and could become a national standard."
Pharmaceutical companies have strictly opposed Senate Bill 17, calling it misleading because the prices set by drugmakers aren't what health plans pay after negotiating discounts or what patients pay out of pocket.
If signed into law Monday, the law will take effect Jan 1.