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SB-852 Health care: prescription drugs.(2019-2020)

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Date Published: 01/13/2020 09:00 PM
SB852:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 852


Introduced by Senator Pan

January 13, 2020


An act relating to health care.


LEGISLATIVE COUNSEL'S DIGEST


SB 852, as introduced, Pan. Health care: prescription drugs.
Existing law requires a manufacturer of a prescription drug with a wholesale acquisition cost of more than $40 for a course of therapy that is purchased or reimbursed by specified purchasers, including state agencies, health care service plans, health insurers, and pharmacy benefit managers, to notify the purchaser of an increase in the wholesale acquisition cost of a prescription drug if that increase exceeds 16 percent, as specified.
This bill would state the intent of the Legislature to introduce legislation to require the State of California to manufacture generic prescription drugs for the purposes of controlling prescription drug costs. The bill would also make related findings and declarations.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares both of the following:
(a) The State of California has a substantial interest in the cost of prescription drugs. California is a major purchaser of prescription drugs through the Public Employees’ Retirement System, the State Department of Health Care Services, the Department of General Services, the Department of Corrections and Rehabilitation, and entities acting on behalf of state purchasers.
(b) According to an Office of Statewide Health Planning and Development report on prescription drug price increases, generic drugs had the largest median price increase from 2017 through the beginning of 2019, rising 37.6 percent, compared to a 25.8-percent median price increase for all drugs over the same three-year period.

SEC. 2.

 It is the intent of the Legislature to introduce legislation to require the State of California to manufacture generic prescription drugs for the purposes of controlling prescription drug costs.