S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2861
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2023
                                ___________
 
 Introduced  by  M. of A. D. ROSENTHAL, COLTON, DICKENS, SEAWRIGHT, CRUZ,
   COOK, SIMON, McDONOUGH, HUNTER, MAGNARELLI -- read once  and  referred
   to the Committee on Health
 
 AN  ACT  to  amend  the  public health law, in relation to requiring the
   commissioner of  health  to  include  in  annual  reports  information
   regarding the cost and increase in cost of certain prescription drugs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 277 of the public health  law,  as
 amended  by  section  18 of part A of chapter 56 of the laws of 2013, is
 amended to read as follows:
   1. The commissioner, in consultation with the drug utilization  review
 board,  shall  undertake  periodic  reviews,  at  least annually, of the
 preferred drug program which shall include consideration of:
   (a) the volume of prior authorizations being handled,  including  data
 on  the  number  and characteristics of prior authorization requests for
 particular prescription drugs;
   (b) the quality of the program's responsiveness, including the quality
 of the administrator's responsiveness;
   (c) complaints received from patients and providers;
   (d) (I) A LIST OF THE  TEN  PRESCRIPTION  DRUGS  ON  WHICH  THE  STATE
 EXPENDS  THE MOST MONEY AND FOR WHICH THE WHOLESALE ACQUISITION COST HAS
 INCREASED BY FIFTY PERCENT OR MORE OVER THE PAST FIVE YEARS  OR  BY  TEN
 PERCENT  OR  MORE  DURING  THE  PREVIOUS CALENDAR YEAR. THE COMMISSIONER
 SHALL: INCLUDE THE PERCENTAGE OF THE WHOLESALE ACQUISITION COST INCREASE
 FOR EACH DRUG ON THE LIST; RANK THE DRUGS ON THE LIST  FROM  THOSE  WITH
 THE  LARGEST  INCREASE  IN  WHOLESALE ACQUISITION COST TO THOSE WITH THE
 SMALLEST INCREASE; INDICATE WHETHER EACH DRUG WAS INCLUDED ON  THE  LIST
 BASED ON ITS COST INCREASE OVER THE PAST FIVE YEARS OR DURING THE PREVI-
 OUS  CALENDAR  YEAR,  OR BOTH; AND PROVIDE THE STATE'S TOTAL EXPENDITURE
 FOR EACH DRUG ON THE LIST DURING THE MOST RECENT CALENDAR YEAR; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06654-01-3
              

 A. 2861                             2
 
   (II) A LIST OF THE TEN PRESCRIPTION DRUGS ON WHICH THE  STATE  EXPENDS
 THE  MOST  MONEY AND FOR WHICH THE COST TO THE STATE, NET OF REBATES AND
 OTHER PRICE CONCESSIONS, HAS INCREASED BY FIFTY PERCENT OR MORE OVER THE
 PAST FIVE YEARS OR BY TEN PERCENT OR MORE DURING THE  PREVIOUS  CALENDAR
 YEAR.  THE COMMISSIONER SHALL RANK THE DRUGS ON THE LIST FROM THOSE WITH
 THE GREATEST INCREASE IN NET COST TO THOSE WITH  THE  SMALLEST  INCREASE
 AND  INDICATE  WHETHER  EACH  DRUG WAS INCLUDED ON THE LIST BASED ON ITS
 COST INCREASE OVER THE PAST FIVE YEARS OR DURING THE  PREVIOUS  CALENDAR
 YEAR, OR BOTH; AND
   (III)  A MANUFACTURER OF A PRESCRIPTION DRUG THAT APPEARS ON A LIST AS
 DESCRIBED IN SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH SHALL SUBMIT  TO
 THE  COMMISSIONER  A REPORT THAT EXPLAINS: (A) ALL MATERIAL FACTORS THAT
 HAVE CONTRIBUTED TO THE WHOLESALE ACQUISITION  COST  INCREASE  FOR  SUCH
 DRUG  INCLUDING  BUT  NOT  LIMITED TO MATERIALS AND MANUFACTURING COSTS,
 SPENDING ON RESEARCH AND DEVELOPMENT COSTS, SPENDING  ON  MARKETING  AND
 ADVERTISING,  AND  SPENDING  ON  PATIENT  ASSISTANCE  PROGRAMS;  (B) THE
 PERCENTAGE OF THE TOTAL WHOLESALE ACQUISITION COST INCREASE ATTRIBUTABLE
 TO EACH FACTOR; (C) AN  EXPLANATION  OF  THE  ROLE  OF  EACH  FACTOR  IN
 CONTRIBUTING  TO  THE WHOLESALE ACQUISITION COST INCREASE; (D) THE TOTAL
 REVENUE AND THE NET PROFIT OF  THE  MANUFACTURER  FOR  THE  MOST  RECENT
 CALENDAR  YEAR;  AND  (E)  ANY  ADDITIONAL  INFORMATION THE MANUFACTURER
 CHOOSES TO PROVIDE RELATED TO DRUG PRICING DECISIONS;
   (E) the savings attributable to the state, and to each county and  the
 city of New York, due to the provisions of this article;
   [(e)] (F) the aggregate amount of supplemental rebates received in the
 previous  fiscal  year and in the current fiscal year, to date; and such
 amounts are to be broken out by fiscal year and by month;
   [(f)] (G) the education and outreach program  established  by  section
 two hundred seventy-six of this [article] TITLE.
   § 2. This act shall take effect immediately.