Bill > S2384

This bill establishes new regulations for prescription drug pricing in Rhode Island, aiming to protect residents from excessive costs. It prohibits the state, health plans (which include insurance companies, health maintenance organizations, and other entities that provide or pay for healthcare services), and participating ERISA plans (which are retirement plans governed by the Employee Retirement Income Security Act of 1974 that opt-in to these regulations) from purchasing or reimbursing for certain "referenced drugs" at a cost higher than a "maximum fair price." This maximum fair price is defined as the rate published by the U.S. Department of Health and Human Services. The bill also requires manufacturers of referenced drugs to negotiate prices in good faith and prohibits them from withdrawing these drugs from the state's market to avoid the price limitations, with significant penalties for violations. Any savings generated by these price controls must be used to reduce costs for consumers, and entities must report on how these savings are utilized, with a focus on promoting health equity. The bill takes effect upon passage.

Health and Social Services

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