Bill > H5620

This bill regulates prescription drug price increases in Rhode Island by establishing a penalty mechanism for unsupported price increases. Specifically, manufacturers of prescription drugs will be subject to an 80% penalty on revenue generated from drugs identified as having price increases not supported by new clinical evidence, as determined by the Institute for Clinical and Economic Review (ICER). The penalty applies to manufacturers with at least $250,000 in annual state sales and will be in effect for two calendar years after a drug is identified in ICER's annual report. Manufacturers must submit detailed reporting about their drug sales and wholesale acquisition costs, and the collected penalties will be deposited in the general fund after covering administrative costs. The bill also prohibits manufacturers from withdrawing a prescription drug from sale or distribution to avoid the penalty, with potential fines of $500,000 for violations. Manufacturers can request a hearing to challenge the penalty, and any appeals must follow administrative procedure rules. The bill aims to discourage arbitrary drug price increases by creating a financial disincentive for manufacturers who raise prices without substantive clinical justification.

Health and Social Services

https://status.rilegislature.gov/