Managed Healthcare® Executive interviewed Dr. Yana Paulson, Chief Pharmacy Officer at L.A. Care, in "New Drug Pricing Act Could Change Drug Pricing". The article talks about a potential new law that aims to address the rising prices of pharmaceutical drugs by requiring price transparency.
The law, known as the Fair Accountability and Innovative Research (FAIR) Drug Pricing Act, would require drug manufacturers to notify the U.S. Department of Health and Human Services of increases under specified circumstances. They would have to submit a transparency and justification report 30 days before they increase the price of certain drugs, if it is by more than 10% over one year or by more than 25% over three years.
Dr. Paulson said that public pressure, greater scrutiny and laws like this one will likely help to keep drug price increases down.
This is because over the last two years, when the press and lawmakers have paid a lot of attention to the issue, drug price increases have slowed.
--Yana Paulson, PharmD
Chief Pharmacy Officer, L.A. Care
Although the act would not prohibit manufacturers from increasing prices, it would give consumers notice of price increases and bring basic transparency to the market for prescription drugs for the first time.
About L.A. Care Health Plan
L.A. Care Health Plan is a public entity and community-accountable health plan serving residents of Los Angeles County through a variety of health coverage programs including L.A. Care Covered™, Medi-Cal, L.A. Care Cal MediConnect Plan and PASC-SEIU Homecare Workers Health Care Plan. L.A. Care is a leader in developing new programs through innovative partnerships designed to provide health coverage to vulnerable populations and to support the safety net. With more than 2 million members, L.A. Care is the nation’s largest publicly operated health plan.