New Bills Propose High Taxes for Unjustified Drug Price Increases

March 2, 2021

Legislators in Washington and Hawaii have introduced bills aimed at drug price increases by pharmaceutical companies. Should these bills be passed, price increases without sufficient clinical evidence would bring large penalties upon the pharma companies. These bills, among others aimed at limiting drug price increases, are strongly contested by pharmaceutical companies.

“Although the bills failed to gain traction and would have to be reintroduced, the idea is likely to irk the pharmaceutical industry. As envisioned, drug makers would face penalties worth 80% of the difference between the sales generated by its medicine in each state and the revenue the drug would have generated if the company had maintained the list price from the previous calendar year, adjusted for inflation.” Read more here.

(Source: Ed Silverman, STAT News, 3/1/21)

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