Legislature rejects drug pricing disclosure bill for second time

By Michael Shaw

Capitol Update, Jan. 15, 2016 Share this on FacebookTweet thisEmail this to a friend

AB 463 was effectively rejected for the second time by the Assembly Health Committee when Assemblymember David Chiu (D-San Francisco) withdrew the bill before it came up for a vote, a clear signal that he did not have the votes to get the bill out of committee. The bill, opposed by CMTA and the pharmaceutical industry, sought to require disclosure of drug cost, development and profits for treatments that cost more than $10,000 per year.

Support for AB 463 came from organized labor groups, consumer advocates and health insurance plans that claimed this was necessary to control rising specialty drug prices. However, CMTA and other opponents argued that disclosing costs involved in developing individual drugs as hard to separate and could be a disincentive to investment in the development of new treatments because the ultimate cost hit an arbitrary threshold.

Assemblymember Chiu is expected to bring drug pricing back as an issue in 2016. 

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