SB 223 – Virginia

Status: Inactive / Dead
Year Introduced: 2018

PRESCRIPTION DRUGS: PRICE GOUGING PROHIBITED. Prohibits unconscionable price increases in the price of essential off-patent or generic drugs, authorizes the Secretary of Health and Human Resources to designate drugs as essential drugs, and establishes an enforcement mechanism. The Director must notify the Attorney General of an increase in the price of an essential off-patent or generic drug if (i) the increased price, alone or in combination with other price increases, would result in a price increase of 50 percent or more in the wholesale acquisition cost of the drug as compared to the wholesale acquisition price for the same drug prior to the increase or the price paid by the Department for the drug prior to the price increase, (ii) the cost of a 30-day supply of the maximum recommended dosage of the drug for any indication approved by the U.S. Food and Drug Administration would cost more than $80 at the wholesale acquisition cost, or (iii) in cases in which the drug is made available to consumers only in quantities that do not correspond to a 30-day supply, a full course of treatment of the drug would exceed $80. Defines “unconscionable price increase” as an increase in the price of a prescription drug that (i) is excessive and not justified by the cost of producing the drug or the cost of appropriate expansion of access to the drug to promote public health and (ii) results in consumers for whom the drug has been prescribed having no meaningful choice about whether to purchase the drug at an excessive price because of the importance of the drug to their health and insufficient competition in the market for the drug.

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