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A California legislator is taking another stab at gaining transparency into drug pricing by introducing a bill that would require drug makers to notify state officials about planned price increases and to also justify price hikes. At the same time, the legislation would also require health plans to provide detailed information about drug costs and the portion of premiums attributed to this expense.

“Millions of Californians have health insurance, but affordability remains a critical issue,” state Senator Edward Hernandez in a statement to announce the bill. “The favorite tactic of drug companies is to help consumers with their co-payments, but all this does is shield consumers from the true cost of the drug while driving up insurance premiums for everyone.


“While other sectors of the healthcare system have safeguards and transparency requirements in place with regards to cost drivers, the pharmaceutical industry has no such mechanisms in place, leading to unsustainable increases in the cost of prescription drugs.”

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