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Ore. lawmakers approve disclosure requirements for drug price increases

An Oregon bill requiring that drug companies disclose certain information such as marketing costs when raising the price of a prescription medication is headed to Gov. Kate Brown's desk after being approved by the state's legislature.

A spokesman for the Democratic governor did not immediately respond when asked if Brown would sign the bill.

The bill is one of several approaches lawmakers nationally are considering to deal with rising drug costs, from allowing the importation of cheaper Canadian drugs to capping particularly expensive medication.

Oregon's bill, passed by the state's Senate March 2 with a 25-4 vote, came over the objections of drug companies.

The measure would create requirements for transparency if a pharmaceutical company raises the price of a drug by more than 10% in a year and if the drug costs at least $100 for a 30-day supply. The company would be required to disclose to the state information such as how much of the increase was attributed to the cost of research and how much was to pay for marketing.

Sen. Elizabeth Hayward, a Democrat who sponsored the bill, did not immediately respond to an inquiry. But she said in a statement to the Portland Business Journal that the information could "take us one step closer in establishing price transparency and a better understanding of the entire supply chain."

Prescription drug spending rose in Oregon by an average of 7.2% annually from 1991 to 2014, according to a state legislative staff report.

The Pharmaceutical Research and Manufacturers of America, or PhRMA, said in an emailed statement that the bill unfairly blames drug companies for the increase.

"The price patients pay for their medicines at the pharmacy counter is determined not by manufacturers, but by middlemen in the supply chain, including insurers, pharmacy benefit managers [PBMs] and others," the group said.

"Without fully addressing the realities of the current supply chain and the actors who determine consumer prices, H.B. 4005 will not provide Oregon patients with meaningful transparency. Instead of targeting life-saving research and development, we should focus on meaningful ways to provide patients with the answers that matter the most to them," PhRMA stated.

However, most of the bills related to drug costs that state lawmakers nationally are considering take aim at PBMs, according to the National Academy for State Health Policy.

Utah's House has approved a bill to allow cheaper prescription drugs to be imported from Canada. It was unclear if the measure would pass that state's Senate before the legislature adjourns for the year on March 8.

A similar bill passed Vermont's Senate and is awaiting action by the House. Vermont's legislature meets through May before adjourning until 2019.

In Maryland, a measure that would allow a state commission to cap large increases in prescription drugs is winding its way through that state's legislature.