Bill > S00396

This bill introduces new regulations for investigating and penalizing significant price increases for critical prescription drugs in New York. The legislation empowers the insurance superintendent to launch an investigation when a critical prescription drug's price increases more than the cost of living index over twelve months. Under the bill, the superintendent can subpoena witnesses, compel document production, and conduct hearings to determine if a price increase is justified. If an unjustified price increase is found, the superintendent can levy civil penalties up to $5,000 per offense, or up to twice the aggregate damages or economic gains from the price increase. Companies that fail to submit required documentation or refuse to cooperate with the investigation can be fined up to $1,000 per day. A "critical prescription drug" is defined as a medication necessary to prevent or treat a potentially fatal condition. The bill aims to provide oversight and potential financial deterrence against what are perceived as excessive drug price increases, with the goal of protecting consumers from unreasonable pharmaceutical pricing practices.

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https://www.nysenate.gov/legislation/bills/2025/S396