Californians are poised to benefit from increased transparency in prescription drug pricing effective January 1, 2018, thanks to Senate Bill 17 (SB-17 Health care: prescription drug costs). A key factor of the SB-17 for consumers is that it requires advanced notice of price increases. The bill was championed by Senator Ed Hernandez in response to concerns over price gouging.
Yet, as January 1st looms, there is a plot twist: Big Pharma is suing. More specifically, the Pharmaceutical Research and Manufacturers of America (PhRMA) has filed suit stating that the bill is unconstitutional and attempts to manipulate health care policy in a manner that could in part lead to reduced competition and drug stockpiling. PhRMA represents biopharmaceutical research companies and makes the point in the lawsuit that SB-17 singles out drug manufacturers as being the sole influencers in pharmaceutical pricing and deny numerous other factors which affect pricing.
For more information on the PhRMA lawsuit see the Rancho Santa Margarita Patch article.