Oregon House OKs prescriptions price transparency bill

As the price of prescription drugs skyrocket nationwide, the Oregon House on Wednesday passed House Bill 4005, which creates a statewide prescription drug cost and price transparency program.

The legislation, aimed at providing consumers more information and requiring drug manufacturers to justify cost increases, was championed by Rep. Rob Nosse (D-Portland), Oregon House Democrats said in a news release announcing the bill’s passage.

“This legislation will help us take the first step, a step we need to take to begin to get at the fastest growing expense we have in health care – prescription drug costs,” Rep. Nosse said. “Oregonians deserve to have transparency in something as vital to good health as prescription drugs. My hope is that this legislation will set us down a path to making health care more affordable for everyone.”

The legislation requires prescription drug manufacturers to report information regarding qualifying prescription drugs, including production, marketing, and research costs, to the Department of Consumer and Business Services . Companies could face civil penalties for failing to comply with the reporting.

“The prescription drug market is a dysfunctional, with manufacturers operating with big payers held hostage to profiteering,” said Rep. Andrea Salinas (D-Lake Oswego). “House Bill 4005 won’t send prescription drug prices plummeting, but it will help us unveil the truth behind the cost drivers when drug manufacturers set the initial price.”

According to research published in the Journal of the American Medical Association, from 2013 to 2015, national spending on prescription drugs increased by approximately 20 percent and accounted for an estimated 17 percent of health care spending.

“I believe we owe it to every Oregonian to make progress on this issue and this legislation will shine the light on how drug prices are truly set, providing answers to patients struggling to pay for their medications,” said. Rep. Teresa Alonso Leon (D-Woodburn), a sponsor of the bill. “I think this is an important step forward for every Oregonian.”

During the floor debate, Rep. Mark Meek (D-Gladstone) talked about his own family experiences dealing with out-of-control prescription drug prices.

“No Oregonian deserves to be priced out of their health,” Rep. Meek said. “This legislation takes critical first steps in bringing patients more transparency on the price of their prescriptions.”

A bipartisan group of legislators sponsored the legislation, including House Democratic members Rep. Alonso Leon, Rep. Phil Barnhart (D-Eugene), Rep. Julie Fahey (D-West Eugene, Junction City, Bethel), Rep. Paul Holvey (D-Eugene), Rep. Alissa Keny – Guyer (D-Portland), Rep. Tina Kotek (D-Portland), Rep. John Lively (D-Springfield), Rep. Susan McLain (D-Forest Grove), Rep. Meek, Rep. Karin Power (D- Milwaukie ), Rep. Salinas, and Rep. Janeen Sollman (D-Hillsboro).

“Oregon House Democrats are working to ensure that every Oregonian has access to quality, affordable health care, including pushing for lower prescription drug prices,” the news release stated.

The legislation, which passed 46-14, now goes to the Oregon Senate for consideration.

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News release from Oregonians for Affordable Drug Prices Now:

Oregonians for Affordable Drug Prices NOW applauds the bipartisanship shown in the passage of HB 4005 by the Oregon House of Representatives. Voting for the bill were 35 Democrats and 11 Republicans. The vote came after lawmakers reached across the aisle, working together to bring new transparency to drug pricing in Oregon. The bill now heads to a vote of the full Oregon Senate and the coalition urges Senate members to follow their colleagues’ lead.

The bill’s chief sponsors are Rep. Rob Nosse (D-Portland), Rep. Ron Noble (R-McMinnville), Sen. Dennis Linthicum (R-Klamath Falls) and Sen. Lee Beyer (D-Springfield).

Debbie Gehlken of Newport, submitted testimony in favor of the bill because like one in 8 Oregonians, she lives with diabetes. The price of her insulin in the United States is more than double than it is in Canada.

“I am grateful that lawmakers stood up for us against the powerful pharmaceutical companies and voted to finally bring transparency to steep drug price increases,” said Gehlken.

“We passed HB 4005 because at the end of the day, this problem starts with the price,” said Rep. Rob Nosse, a chief sponsor of the bill who has been the leader in the movement for prescription drug price transparency.

“I’m all for transparency,” said Representative Noble, “and HB 4005 is designed to begin the process to provide transparency and to help us all understand the rising cost of prescription drugs. Sunshine is the best disinfectant, and HB 4005 will begin the process to shine the light on the cost of prescription drug prices that is needed to make a positive change for Oregonians. I am proud to join Representative Nosse in bringing this bill to the house floor.”

HB 4005 was developed after a multi-year process that included a stakeholder workgroup in 2016 that concluded the best place to start in addressing high drug prices was at the manufacturer level, where the prices are originally set. To that end, HB 4005 implements essential transparency into how and why manufacturers seek double digit price increases and requires health plans to report on how those prices affect premiums. The bill also then takes the issue to the next level to establish a follow up task force to look at additional points in the distribution chain that affect price increases for possible future legislative recommendations.

Here are the prescription drug transparency provisions in HB 4005.

Under the bill, drug manufacturers would have to report to payers and to the state Department of Consumer and Business Services (DCBS) whenever they have increased prices more than 10% a year on drugs that cost more than $100 a month. Drug manufacturers must report:

– The original price of the drug when it was introduced
– Research and development costs
– Advertising and marketing costs
– Profits for the drug
– Whether generic drug alternatives are available
– What the price is for their drugs in other countries

HB 4005 also requires insurance companies to report the 25 most expensive prescription drugs in their plans, which ones have increased the highest, and how those costs affect our premiums.

HB 4005 adds much needed public transparency as well. The bill would require the State Department Consumer and Business Services to publicly post a list of the drugs that have had high price increases and hold annual public meetings about prescription drug prices and make recommendations to the state legislature about further actions to lower prescription drug prices.

A large coalition of unlikely allies has endorsed HB 4005, including the Oregon Nurses Association, the Oregon Medical Association, pharmacy associations, AARP-Oregon, consumer groups, labor unions, and health plans. The coalition has been working for more than two years to pass meaningful legislation to tackle the problem of the high price of prescription drugs.

To learn more and get involved, go to AffordableRxNow.org