NY State Senate Bill 2023-S2387

Current Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 20, 2023	referred to insurance

2023-S2387 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §346, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7739
2021-2022: S320

2023-S2387 (ACTIVE) - Summary

Requires investigating of critical prescription drug pricing; provides for civil penalties and private actions for certain critical prescription drug pricing.

2023-S2387 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2387

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the insurance law, in relation to investigating critical
prescription drug pricing

 
PURPOSE:

To protect vulnerable populations from price increases for critical
prescription drugs.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law by adding a new section 346 which
permits the superintendent to investigate any increase in a "critical
prescription drug" as defined in the amendment that exceeds the consumer
list price index during any preceding twelve month period.  The super-
intendent may require the submission of a statement in writing justify-
ing the price increase and may also compel the attendance of witnesses
to be examined under oath as well as require the production of any books

or papers which the superintendent deems relevant to the investigation.
A person's refusal to cooperate with the investigation will subject that
person to civil and criminal penalties. This section also provides for
civil penalties if, after investigation, the superintendent determines
after notice and a hearing, that the increase in the price of the crit-
ical prescription drug was unjustified.

Section 2 provides the effective date.

 
JUSTIFICATION:

Anecdotal reports of significant price increases for prescription drugs
is supported by the following data:

Overall spending on prescription drugs has risen tremendously since
1960.

The cost of the exact same drugs can differ by thousands depending on
where in the country they are being purchased.

The price of insulin nearly doubled between 2012 and 2016.

In the first half of 2019, drug prices rose an average of 10.5%, or 5
times the rate of inflation.

From 2012 to 2017, brand name drugs rose on an average of 9.5 percent
per year, leading researchers to conclude that drug prices are on pace
to double every 7-8 years. (The drugs in this study included treatments
for diabetes, smoking cessation, depression, cholesterol, pain, meno-
pause, and erectile dysfunction.)

In a study of 49 common top-selling brand-name drugs, 78% of the drugs
that have been available since 2012 have seen an increase in insurer and
out-of-pocket costs by more than 50%, and 44% have more than doubled in
price.


Nearly one in four Americans struggle to pay for their prescription drug
prices and more than four in ten Americans in poor health struggle to
afford their drugs. The poor and particularly the elderly are especially
vulnerable to price increases. The inability to access reasonably priced
drugs can be life-threatening. It is not unfair to require companies
that manufacture and distribute critical prescription drugs to justify
price increases that exceed the cost of living index. It is also not
unfair to punish companies that engage in such practices that threaten
the very lives of many Americans.

 
LEGISLATIVE HISTORY:

S320 of 2021-22: Referred to Insurance.

S7739 of 2019-20: Referred to Insurance.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S2387 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2387
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to investigating critical
   prescription drug pricing
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The insurance law is amended by adding a new section 346 to
 read as follows:
   §  346.  INVESTIGATION  BY THE SUPERINTENDENT WITH RESPECT TO CRITICAL
 PRESCRIPTION DRUGS. (A) WHENEVER IT SHALL APPEAR TO THE  SUPERINTENDENT,
 EITHER  UPON COMPLAINT OR OTHERWISE, THAT IN THE ADVERTISEMENT, PURCHASE
 OR SALE WITHIN THIS STATE OF ANY CRITICAL PRESCRIPTION  DRUG,  THAT  THE
 PRICE  OF  THAT CRITICAL PRESCRIPTION DRUG HAS INCREASED OVER THE COURSE
 OF ANY TWELVE MONTHS BY MORE THAN THE INCREASE OF  THE  COST  OF  LIVING
 INDEX FOR THE LIST PRICE OF THAT CRITICAL PRESCRIPTION DRUG, OR IF IT IS
 SUSPECTED  THAT  ANY PERSON, PARTNERSHIP, CORPORATION, COMPANY, TRUST OR
 ASSOCIATION, OR ANY AGENT OR EMPLOYEE THEREOF HAS SOLD  OR  OFFERED  FOR
 SALE  OR  IS  ATTEMPTING  TO  SELL OR IS OFFERING FOR SALE  ANY CRITICAL
 PRESCRIPTION  DRUG  FOR WHICH  THE PRICE OF THAT DRUG HAS INCREASED OVER
 THE COURSE OF ANY TWELVE MONTHS BY MORE THAN THE INCREASE OF THE COST OF
 LIVING INDEX FOR THE LIST PRICE OF THAT DRUG, OR IF  THE  SUPERINTENDENT
 BELIEVES IT IS TO THE PUBLIC INTEREST TO INVESTIGATE, THE SUPERINTENDENT
 SHALL  REQUIRE  SUCH PERSON, PARTNERSHIP, CORPORATION, COMPANY, TRUST OR
 ASSOCIATION, OR ANY AGENT OR EMPLOYEE THEREOF, TO FILE WITH THE  DEPART-
 MENT  A STATEMENT IN WRITING UNDER OATH OR OTHERWISE AS TO ALL THE FACTS
 AND CIRCUMSTANCES CONCERNING THE PRICE INCREASE AND FOR THAT PURPOSE MAY
 PRESCRIBE FORMS UPON WHICH SUCH STATEMENTS SHALL BE MADE.
   (B) IN ADDITION TO ANY OTHER POWER GRANTED BY LAW, THE SUPERINTENDENT,
 HIS OR HER DEPUTY OR OTHER OFFICER DESIGNATED BY THE  SUPERINTENDENT  IS
 EMPOWERED  TO  SUBPOENA WITNESSES, COMPEL THEIR ATTENDANCE, EXAMINE THEM
 UNDER OATH AND REQUIRE THE PRODUCTION OF ANY BOOKS OR PAPERS WHICH HE OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04078-01-3

 S. 2387                             2
 
 SHE DEEMS RELEVANT OR MATERIAL TO THE INQUIRY.  SUCH POWER  OF  SUBPOENA
 AND  EXAMINATION SHALL NOT ABATE OR TERMINATE BY REASON OF ANY ACTION OR
 PROCEEDING BROUGHT BY THE ATTORNEY GENERAL.
   (C)  NO  PERSON  SHALL  BE  EXCUSED  FROM  ATTENDING  SUCH  INQUIRY IN
 PURSUANCE TO THE MANDATES OF A SUBPOENA, OR FROM PRODUCING  A  PAPER  OR
 BOOK,  OR  FROM BEING   EXAMINED OR REQUIRED TO ANSWER A QUESTION ON THE
 GROUND OF FAILURE OF TENDER OR PAYMENT OF A WITNESS FEE AND/OR  MILEAGE,
 UNLESS AT THE TIME OF SUCH APPEARANCE OR PRODUCTION, AS THE CASE MAY BE,
 SUCH WITNESS MAKES DEMAND FOR SUCH PAYMENT AS A CONDITION  PRECEDENT  TO
 THE  OFFERING  OF  TESTIMONY  OR PRODUCTION REQUIRED BY THE SUBPOENA AND
 UNLESS SUCH PAYMENT IS NOT THEREUPON MADE. THE PROVISIONS FOR PAYMENT OF
 WITNESS FEE AND/OR MILEAGE SHALL NOT APPLY TO ANY OFFICER,  DIRECTOR  OR
 PERSON  IN  THE EMPLOY OF ANY PERSON, PARTNERSHIP, CORPORATION, COMPANY,
 TRUST OR ASSOCIATION WHOSE CONDUCT OR PRACTICES ARE BEING INVESTIGATED.
   (D) IF A PERSON SUBPOENAED TO ATTEND SUCH INQUIRY FAILS  TO  OBEY  THE
 COMMAND  OF  A  SUBPOENA  WITHOUT  REASONABLE  CAUSE,  OR IF A PERSON IN
 ATTENDANCE UPON SUCH INQUIRY SHALL WITHOUT REASONABLE CAUSE REFUSE TO BE
 SWORN OR TO BE EXAMINED OR TO ANSWER A QUESTION OR TO PRODUCE A BOOK  OR
 PAPER  WHEN  ORDERED SO TO DO BY THE OFFICER CONDUCTING SUCH INQUIRY, OR
 IF A PERSON, PARTNERSHIP, CORPORATION,   COMPANY, TRUST  OR  ASSOCIATION
 FAILS TO PERFORM ANY ACT REQUIRED BY THIS SECTION TO BE PERFORMED, HE OR
 SHE  SHALL  BE  GUILTY  OF A MISDEMEANOR AND SHALL BE SUBJECT TO A CIVIL
 PENALTY AS SET FORTH IN SUBSECTION (E) OF THIS SECTION.
   (E) (1) IF AFTER AN INVESTIGATION AUTHORIZED UNDER  THIS  SECTION  THE
 SUPERINTENDENT DETERMINES THAT THE INCREASE IN THE PRICE OF THE CRITICAL
 PRESCRIPTION  DRUG  IS UNJUSTIFIED, THE SUPERINTENDENT MAY, AFTER NOTICE
 AND A HEARING, LEVY A CIVIL PENALTY NOT TO EXCEED THE GREATER OF:
   (A) FIVE THOUSAND DOLLARS FOR EACH OFFENSE;
   (B) A MULTIPLE OF TWO TIMES THE AGGREGATE DAMAGES ATTRIBUTABLE TO  THE
 OFFENSE; OR
   (C)  A  MULTIPLE OF TWO TIMES THE AGGREGATE ECONOMIC GAIN ATTRIBUTABLE
 TO THE OFFENSE.
   (2) IF ANY PERSON, PARTNERSHIP, CORPORATION, COMPANY, TRUST OR ASSOCI-
 ATION, THAT FAILS TO SUBMIT A WRITTEN STATEMENT REQUIRED BY  THE  SUPER-
 INTENDENT  UNDER  SUBSECTION  (A) OF THIS SECTION OR VIOLATES SUBSECTION
 (D) OF THIS SECTION, THE SUPERINTENDENT MAY, AFTER NOTICE AND A HEARING,
 LEVY  A CIVIL PENALTY NOT TO EXCEED TO ONE THOUSAND DOLLARS PER DAY THAT
 SUCH FAILURE CONTINUES.
   (F) FOR THE PURPOSES OF THIS SECTION, A "CRITICAL  PRESCRIPTION  DRUG"
 SHALL BE DEFINED AS ONE NECESSARY TO PREVENT OR TREAT A DISEASE OR STATE
 IN WHICH DEATH IS POSSIBLE OR IMMINENT.
   § 2. This act shall take effect immediately.

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Senate Bill S2387

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

2023-S2387 (ACTIVE) - Details

2023-S2387 (ACTIVE) - Summary

2023-S2387 (ACTIVE) - Sponsor Memo

2023-S2387 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2387

Share this bill

Sponsored By

Zellnor Myrie

Current Bill Status - In Senate Committee Insurance Committee

2023-S2387 (ACTIVE) - Details

2023-S2387 (ACTIVE) - Summary

2023-S2387 (ACTIVE) - Sponsor Memo

2023-S2387 (ACTIVE) - Bill Text download pdf

Comments