Legal Fight Looms Over California's New Drug Pricing Law
- Legislation requires drugmakers to notify state of price hikes
- State’s pricing bill drew opposition from industry groups
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California passed a law requiring pharmaceutical companies to explain their price increases, escalating the state-by-state battle between lawmakers trying to bring more transparency to the industry’s practices and drugmakers that oppose the efforts.
The California measure, signed Monday by Governor Jerry Brown, is among the most aggressive state efforts to peel back the secretive process of setting drug prices in the U.S. The law requires pharmaceutical companies to notify insurers and government health plans at least 60 days before a planned price increase of more than 16 percent during a two-year period, and to explain the rationale for the increase. The information will be available on a government website.