Bill > H5860

This bill establishes a comprehensive prescription drug cost protection law in Rhode Island aimed at preventing excessive drug pricing. The legislation prohibits state entities, health plans, and participating ERISA (Employee Retirement Income Security Act) plans from purchasing referenced drugs at prices higher than the "maximum fair price" set by the U.S. Department of Health and Human Services. The bill defines key terms such as health plans, referenced drugs, and participating ERISA plans, and provides a framework for how these entities must handle drug purchases. It requires entities to use any savings generated from lower drug prices to reduce consumer costs and promote health equity, with mandatory annual reporting to the insurance commissioner. The law includes enforcement mechanisms, with potential fines of $1,000 per violation for entities that purchase drugs above the referenced rate, and significant penalties (up to $500,000 or the amount of annual savings) for manufacturers or distributors who attempt to withdraw drugs from the market to avoid price limitations or who refuse to negotiate in good faith. The bill's legislative intent emphasizes protecting Rhode Island residents from the negative economic and health impacts of excessive prescription drug prices, highlighting concerns about affordability, access to healthcare, and the broader economic strain caused by rising drug costs.

Health and Social Services

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