New requirements for transparency in prescription drug pricing are heading to Gov. Kathy Hochul's desk after the measure was granted final approval this week in the state Legislature.
If signed into law, drug makers would be required to notify the public of price increases before they take effect through the drug utilization review board — a move that supporters hope will lead to lower prices for consumers.
Backed by state Sen. Julia Salazar and Assemblymember Daniel Rosenthal, the measure has won support from insurance organizations as well as AARP New York.
“Sky-high prescription drug prices have led too many New Yorkers to skip medications or make tough choices between buying food, paying the rent, covering their utility bills or getting the medications they need," said AARP New York State Director Beth Finkel.
Finkel pointed to states like California, Texas, New Jersey, Connecticut and Vermont that have enacted transparency measures for prescription drug costs, which in turn were followed by reductions in price hikes.
Insurers have also backed the proposal, calling it necessary to control costs in an already expensive state.
“Year after year, drug companies raise prices — in some instances by double digits — without having to provide any justification or advance notice for consumers and employers," said Eric Linzer, the president and CEO of the Health Plan Association. "This past January, Big Pharma increased the price on nearly 1,000 much needed medications, which surpassed 2022 when manufacturers raised prices on more than 800 brand name medications."