States Rush to Rein In Prescription Costs, and Drug Companies Fight Back

Nationwide, states are forcing pharmaceutical companies to disclose and justify price hikes, reports the New York Times . The drug manufacturers, in turn, are challenging the state laws as a violation of their constitutional rights. The bipartisan efforts by states come as the White House is pressuring drug companies to freeze prices and slash out-of-pocket costs for consumers struggling to pay for drugs. Twenty-four states have passed 37 bills this year to curb rising prescription costs, reports Trish Riley, executive director of the National Academy for State Health Policy. Under a new Connecticut law, for example, drug companies must justify price increases for certain drugs if the price rises by at least 20 percent in one year or 50 percent over three years. Additionally, pharmacy benefit managers must publish the amount of rebates and other price concessions they get from drug companies.