Sen. Ed Hernandez (D-West Covina, Calif.) pulled a drug price transparency bill he proposed, according to Healthcare Finance.
Here are five things to know:
1. Sen. Hernandez pulled the bill on Aug. 17 due to Assembly Appropriations committee amendments that transformed the bill into something unreflective of his original intention.
2. The proposed bill involved mandating drug companies to justify increased prices and treatment costs.
3. Specifically, drug companies would have to report any new drugs priced $10,000 or more per year or for one treatment course to state agencies and health insurers within 60 days of FDA approval. The manufacturers would also have to offer reasoning for those price hikes. Additionally, the companies would have to give notice before increasing a drug's price by more than 10 percent.
4. The Assembly Appropriations committee amendments included hiking the reporting threshold to more than a 25 percent price increase. Drug companies would also not be required to justify the price increases, under the amended bill.
5. Opponents of the bill argue drug companies bear the brunt of responsibility, which doesn't reflect the fact that wholesalers, distributors and health plans also play roles in drug prices.