The bill prohibits pharmaceutical manufacturers from selling a prescription drug for a price higher than the drug’s reference price (i.e., the drug’s wholesale acquisition cost) adjusted for changes in the consumer price index for urban consumers, plus 2% of the reference price per year compounded annually on the anniversary of the date the
drug was first commercially marketed. The price limits apply to drugs with a wholesale acquisition cost of $100 or more.
Under the bill, pharmaceutical manufacturers who violate the price limit are liable to the state for a civil penalty of 80% of the increased revenue the pharmaceutical manufacturer earned by selling the drug higher than allowed. It also establishes procedures and due process for reporting, collecting, and contesting the penalty. The bill also subjects pharmaceutical manufacturers to a $500,000 civil penalty if they withdraw a drug from the Connecticut market (1)
without giving advance written notice or (2) to avoid paying the civil penalty for selling a drug above the price limit.