-  This bill is not active in this session.
 

A01707 Summary:

BILL NOA01707A
 
SAME ASSAME AS S00599-A
 
SPONSORRosenthal D
 
COSPNSRDickens, Colton, Williams, Seawright, Cook, Simon, Jacobson, Hunter, Dinowitz, Zinerman, Weprin, Meeks, Shimsky, Rosenthal L, Buttenschon, Ramos, Lupardo, Levenberg, Stirpe, Gonzalez-Rojas, Sillitti, Jean-Pierre, McDonald, Simone, Lee, Pheffer Amato, Zaccaro, Raga, Bores, Reyes
 
MLTSPNSR
 
Add 111-a, Ins L
 
Requires certain manufacturers of prescription drugs to notify the superintendent of any proposed increase of the wholesale acquisition cost of such prescription drugs.
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A01707 Actions:

BILL NOA01707A
 
01/18/2023referred to health
02/08/2023reference changed to insurance
04/26/2023reported referred to codes
05/09/2023reported
05/11/2023advanced to third reading cal.196
05/15/2023substituted by s599
 S00599 AMEND=A SALAZAR
 01/05/2023REFERRED TO HEALTH
 01/17/2023REPORTED AND COMMITTED TO RULES
 01/17/2023ORDERED TO THIRD READING CAL.75
 01/17/2023PASSED SENATE
 01/17/2023DELIVERED TO ASSEMBLY
 01/17/2023referred to health
 05/15/2023substituted for a1707
 05/15/2023ordered to third reading cal.196
 05/30/2023substitution reconsidered
 05/30/2023recommitted to health
 05/31/2023RECALLED FROM ASSEMBLY
 05/31/2023returned to senate
 06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
 06/01/2023AMENDED ON THIRD READING 599A
 06/06/2023SUBSTITUTED BY A1707A
  A01707 AMEND=A Rosenthal D
  01/18/2023referred to health
  02/08/2023reference changed to insurance
  04/26/2023reported referred to codes
  05/09/2023reported
  05/11/2023advanced to third reading cal.196
  05/15/2023substituted by s599
   S00599 AMEND=A SALAZAR
   01/05/2023REFERRED TO HEALTH
   01/17/2023REPORTED AND COMMITTED TO RULES
   01/17/2023ORDERED TO THIRD READING CAL.75
   01/17/2023PASSED SENATE
   01/17/2023DELIVERED TO ASSEMBLY
   01/17/2023referred to health
   05/15/2023substituted for a1707
   05/15/2023ordered to third reading cal.196
   05/30/2023substitution reconsidered
   05/30/2023recommitted to health
   05/31/2023RECALLED FROM ASSEMBLY
   05/31/2023returned to senate
   06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
   06/01/2023AMENDED ON THIRD READING 599A
   06/06/2023SUBSTITUTED BY A1707A
    A01707 AMEND=A Rosenthal D
    01/18/2023referred to health
    02/08/2023reference changed to insurance
    04/26/2023reported referred to codes
    05/09/2023reported
    05/11/2023advanced to third reading cal.196
    05/15/2023substituted by s599
     S00599 AMEND=A SALAZAR
     01/05/2023REFERRED TO HEALTH
     01/17/2023REPORTED AND COMMITTED TO RULES
     01/17/2023ORDERED TO THIRD READING CAL.75
     01/17/2023PASSED SENATE
     01/17/2023DELIVERED TO ASSEMBLY
     01/17/2023referred to health
     05/15/2023substituted for a1707
     05/15/2023ordered to third reading cal.196
     05/30/2023substitution reconsidered
     05/30/2023recommitted to health
     05/31/2023RECALLED FROM ASSEMBLY
     05/31/2023returned to senate
     06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
     06/01/2023AMENDED ON THIRD READING 599A
     06/06/2023SUBSTITUTED BY A1707A
      A01707 AMEND=A Rosenthal D
      01/18/2023referred to health
      02/08/2023reference changed to insurance
      04/26/2023reported referred to codes
      05/09/2023reported
      05/11/2023advanced to third reading cal.196
      05/15/2023substituted by s599
       S00599 AMEND=A SALAZAR
       01/05/2023REFERRED TO HEALTH
       01/17/2023REPORTED AND COMMITTED TO RULES
       01/17/2023ORDERED TO THIRD READING CAL.75
       01/17/2023PASSED SENATE
       01/17/2023DELIVERED TO ASSEMBLY
       01/17/2023referred to health
       05/15/2023substituted for a1707
       05/15/2023ordered to third reading cal.196
       05/30/2023substitution reconsidered
       05/30/2023recommitted to health
       05/31/2023RECALLED FROM ASSEMBLY
       05/31/2023returned to senate
       06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
       06/01/2023AMENDED ON THIRD READING 599A
       06/06/2023SUBSTITUTED BY A1707A
        A01707 AMEND=A Rosenthal D
        01/18/2023referred to health
        02/08/2023reference changed to insurance
        04/26/2023reported referred to codes
        05/09/2023reported
        05/11/2023advanced to third reading cal.196
        05/15/2023substituted by s599
         S00599 AMEND=A SALAZAR
         05/30/2023substitution reconsidered
         05/30/2023restored to third reading
         05/30/2023amended on third reading 1707a
         06/06/2023passed assembly
         06/06/2023delivered to senate
         06/06/2023REFERRED TO RULES
         06/06/2023SUBSTITUTED FOR S599A
         06/06/20233RD READING CAL.75
         05/30/2023substitution reconsidered
         05/30/2023restored to third reading
         05/30/2023amended on third reading 1707a
         06/06/2023passed assembly
         06/06/2023delivered to senate
         06/06/2023REFERRED TO RULES
         06/06/2023SUBSTITUTED FOR S599A
         06/06/20233RD READING CAL.75
         06/06/2023PASSED SENATE
         06/06/2023RETURNED TO ASSEMBLY
         05/30/2023substitution reconsidered
         05/30/2023restored to third reading
         05/30/2023amended on third reading 1707a
         06/06/2023passed assembly
         06/06/2023delivered to senate
         06/06/2023REFERRED TO RULES
         06/06/2023SUBSTITUTED FOR S599A
         06/06/20233RD READING CAL.75
         06/06/2023PASSED SENATE
         06/06/2023RETURNED TO ASSEMBLY
         12/12/2023delivered to governor
         05/30/2023substitution reconsidered
         05/30/2023restored to third reading
         05/30/2023amended on third reading 1707a
         06/06/2023passed assembly
         06/06/2023delivered to senate
         06/06/2023REFERRED TO RULES
         06/06/2023SUBSTITUTED FOR S599A
         06/06/20233RD READING CAL.75
         06/06/2023PASSED SENATE
         06/06/2023RETURNED TO ASSEMBLY
         12/12/2023delivered to governor
         12/22/2023signed chap.738
         05/30/2023substitution reconsidered
         05/30/2023restored to third reading
         05/30/2023amended on third reading 1707a
         06/06/2023passed assembly
         06/06/2023delivered to senate
         06/06/2023REFERRED TO RULES
         06/06/2023SUBSTITUTED FOR S599A
         06/06/20233RD READING CAL.75
         06/06/2023PASSED SENATE
         06/06/2023RETURNED TO ASSEMBLY
         12/12/2023delivered to governor
         12/22/2023signed chap.738
         01/05/2023REFERRED TO HEALTH
         01/17/2023REPORTED AND COMMITTED TO RULES
         01/17/2023ORDERED TO THIRD READING CAL.75
         01/17/2023PASSED SENATE
         01/17/2023DELIVERED TO ASSEMBLY
         01/17/2023referred to health
         05/15/2023substituted for a1707
         05/15/2023ordered to third reading cal.196
         05/30/2023substitution reconsidered
         05/30/2023recommitted to health
         05/31/2023RECALLED FROM ASSEMBLY
         05/31/2023returned to senate
         06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
         06/01/2023AMENDED ON THIRD READING 599A
         06/06/2023SUBSTITUTED BY A1707A
          A01707 AMEND=A Rosenthal D
          01/18/2023referred to health
          02/08/2023reference changed to insurance
          04/26/2023reported referred to codes
          05/09/2023reported
          05/11/2023advanced to third reading cal.196
          05/15/2023substituted by s599
           S00599 AMEND=A SALAZAR
           01/05/2023REFERRED TO HEALTH
           01/17/2023REPORTED AND COMMITTED TO RULES
           01/17/2023ORDERED TO THIRD READING CAL.75
           01/17/2023PASSED SENATE
           01/17/2023DELIVERED TO ASSEMBLY
           01/17/2023referred to health
           05/15/2023substituted for a1707
           05/15/2023ordered to third reading cal.196
           05/30/2023substitution reconsidered
           05/30/2023recommitted to health
           05/31/2023RECALLED FROM ASSEMBLY
           05/31/2023returned to senate
           06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
           06/01/2023AMENDED ON THIRD READING 599A
           06/06/2023SUBSTITUTED BY A1707A
            A01707 AMEND=A Rosenthal D
            01/18/2023referred to health
            02/08/2023reference changed to insurance
            04/26/2023reported referred to codes
            05/09/2023reported
            05/11/2023advanced to third reading cal.196
            05/15/2023substituted by s599
             S00599 AMEND=A SALAZAR
             01/05/2023REFERRED TO HEALTH
             01/17/2023REPORTED AND COMMITTED TO RULES
             01/17/2023ORDERED TO THIRD READING CAL.75
             01/17/2023PASSED SENATE
             01/17/2023DELIVERED TO ASSEMBLY
             01/17/2023referred to health
             05/15/2023substituted for a1707
             05/15/2023ordered to third reading cal.196
             05/30/2023substitution reconsidered
             05/30/2023recommitted to health
             05/31/2023RECALLED FROM ASSEMBLY
             05/31/2023returned to senate
             06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
             06/01/2023AMENDED ON THIRD READING 599A
             06/06/2023SUBSTITUTED BY A1707A
              A01707 AMEND=A Rosenthal D
              01/18/2023referred to health
              02/08/2023reference changed to insurance
              04/26/2023reported referred to codes
              05/09/2023reported
              05/11/2023advanced to third reading cal.196
              05/15/2023substituted by s599
               S00599 AMEND=A SALAZAR
               01/05/2023REFERRED TO HEALTH
               01/17/2023REPORTED AND COMMITTED TO RULES
               01/17/2023ORDERED TO THIRD READING CAL.75
               01/17/2023PASSED SENATE
               01/17/2023DELIVERED TO ASSEMBLY
               01/17/2023referred to health
               05/15/2023substituted for a1707
               05/15/2023ordered to third reading cal.196
               05/30/2023substitution reconsidered
               05/30/2023recommitted to health
               05/31/2023RECALLED FROM ASSEMBLY
               05/31/2023returned to senate
               06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
               06/01/2023AMENDED ON THIRD READING 599A
               06/06/2023SUBSTITUTED BY A1707A
                A01707 AMEND=A Rosenthal D
                01/18/2023referred to health
                02/08/2023reference changed to insurance
                04/26/2023reported referred to codes
                05/09/2023reported
                05/11/2023advanced to third reading cal.196
                05/15/2023substituted by s599
                 S00599 AMEND=A SALAZAR
                 01/05/2023REFERRED TO HEALTH
                 01/17/2023REPORTED AND COMMITTED TO RULES
                 01/17/2023ORDERED TO THIRD READING CAL.75
                 01/17/2023PASSED SENATE
                 01/17/2023DELIVERED TO ASSEMBLY
                 01/17/2023referred to health
                 05/15/2023substituted for a1707
                 05/15/2023ordered to third reading cal.196
                 05/30/2023substitution reconsidered
                 05/30/2023recommitted to health
                 05/31/2023RECALLED FROM ASSEMBLY
                 05/31/2023returned to senate
                 06/01/2023VOTE RECONSIDERED - RESTORED TO THIRD READING
                 06/01/2023AMENDED ON THIRD READING 599A
                 06/06/2023SUBSTITUTED BY A1707A
                  A01707 AMEND=A Rosenthal D
                  01/18/2023referred to health
                  02/08/2023reference changed to insurance
                  04/26/2023reported referred to codes
                  05/09/2023reported
                  05/11/2023advanced to third reading cal.196
                  05/15/2023substituted by s599
                   S00599 AMEND=A SALAZAR
                   05/30/2023substitution reconsidered
                   05/30/2023restored to third reading
                   05/30/2023amended on third reading 1707a
                   06/06/2023passed assembly
                   06/06/2023delivered to senate
                   06/06/2023REFERRED TO RULES
                   06/06/2023SUBSTITUTED FOR S599A
                   06/06/20233RD READING CAL.75
                   05/30/2023substitution reconsidered
                   05/30/2023restored to third reading
                   05/30/2023amended on third reading 1707a
                   06/06/2023passed assembly
                   06/06/2023delivered to senate
                   06/06/2023REFERRED TO RULES
                   06/06/2023SUBSTITUTED FOR S599A
                   06/06/20233RD READING CAL.75
                   06/06/2023PASSED SENATE
                   06/06/2023RETURNED TO ASSEMBLY
                   05/30/2023substitution reconsidered
                   05/30/2023restored to third reading
                   05/30/2023amended on third reading 1707a
                   06/06/2023passed assembly
                   06/06/2023delivered to senate
                   06/06/2023REFERRED TO RULES
                   06/06/2023SUBSTITUTED FOR S599A
                   06/06/20233RD READING CAL.75
                   06/06/2023PASSED SENATE
                   06/06/2023RETURNED TO ASSEMBLY
                   12/12/2023delivered to governor
                   05/30/2023substitution reconsidered
                   05/30/2023restored to third reading
                   05/30/2023amended on third reading 1707a
                   06/06/2023passed assembly
                   06/06/2023delivered to senate
                   06/06/2023REFERRED TO RULES
                   06/06/2023SUBSTITUTED FOR S599A
                   06/06/20233RD READING CAL.75
                   06/06/2023PASSED SENATE
                   06/06/2023RETURNED TO ASSEMBLY
                   12/12/2023delivered to governor
                   12/22/2023signed chap.738
                   05/30/2023substitution reconsidered
                   05/30/2023restored to third reading
                   05/30/2023amended on third reading 1707a
                   06/06/2023passed assembly
                   06/06/2023delivered to senate
                   06/06/2023REFERRED TO RULES
                   06/06/2023SUBSTITUTED FOR S599A
                   06/06/20233RD READING CAL.75
                   06/06/2023PASSED SENATE
                   06/06/2023RETURNED TO ASSEMBLY
                   12/12/2023delivered to governor
                   12/22/2023signed chap.738
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A01707 Committee Votes:

INSURANCE Chair:Weprin DATE:04/26/2023AYE/NAY:20/4 Action: Favorable refer to committee Codes
WeprinAyeBlankenbushNay
CookAyeHawleyNay
PretlowAyePalmesanoNay
LavineAyeGandolfoAye
SteckAyeCurranAye
DilanAyeJensenAye
HunterAyeBlumencranzNay
RosenthalAyeBendettAye
SternAye
JacobsonAye
MeeksAye
ForrestAye
AndersonAye
CruzAye
BoresAye
LunsfordAye

CODES Chair:Dinowitz DATE:05/09/2023AYE/NAY:16/5 Action: Favorable
DinowitzAyeMorinelloNay
PretlowAyeReillyAye
CookAyeMikulinNay
O'DonnellAyeTannousisAye
LavineAyeCurranAye
WeprinAyeAngelinoNay
HevesiNayFloodNay
SeawrightAye
RosenthalAye
WalkerAbsent
VanelAye
CruzAye
CarrollAye
SimonAye
EpsteinAye

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A01707 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1707A
 
SPONSOR: Rosenthal D
  TITLE OF BILL: An act to amend the insurance law, in relation to requiring certain manufacturers of prescription drugs to notify the superintendant of any proposed increase of the wholesale acquisition cost of such prescription drugs   PURPOSE: This bill would require manufacturers to provide at least 60-day notice of their intent to raise wholesale prescription drug costs to the Department of Financial Services if the total cost of the drug has increased 16% or more over the 24 months prior to the increase.   SUMMARY OF PROVISIONS: Section 1 amends the insurance law to add new section 111-a relating to notification of prescription drug price increases by manufacturers. Section 2 provides the effective date.   JUSTIFICATION: This legislation will provide early warning of increases in the price of prescription drugs. Breakthrough medications offer tremendous clinical benefits for patients, but they should not be a blank check. The prices charged for prescription drugs are a major threat to keeping health care affordable for New York employers and consumers. Exorbitant increases in prescription drug prices have been consistent across all segments of the pharmaceutical industry. For example, in 2016 Mylan increased the price for a package of two EpiPen Auto-Injectors from just over $100 to more than $600 without any warning or public justification. Since the start of 2019, more than two dozen drug makers have raised the prices on a wide array of drugs by double-digit percentages. The bill will not prohibit manufacturers from increasing prices, but would require notice of price increases, enhancing transparency of prescription drug costs. Providing notice before a price increase of more than 16 percent takes effect is important so that consumers, employers, providers, health plans and the state are prepared and can take steps before the increase is implemented. It would also be impor- tant for the policymakers to be provided with the rationale for the increase including whether the price increases will benefit the public to help fund research and development that improve patient care or will it merely result in increasing the cost of health care.   LEGISLATIVE HISTORY: 2019 & 2020:S5942 /A8253 - Referred to Health Committees in both houses. 2021 & 2022:S7499E/ A6638 - Passed Senate. Died in Assembly Health Committee   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A01707 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1707--A
                                                                Cal. No. 196
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 18, 2023
                                       ___________
 
        Introduced   by  M.  of  A.  D. ROSENTHAL,  DICKENS,  COLTON,  WILLIAMS,
          SEAWRIGHT, COOK, SIMON, JACOBSON, HUNTER, DINOWITZ, ZINERMAN,  WEPRIN,
          MEEKS,  SHIMSKY, L. ROSENTHAL, BUTTENSCHON, RAMOS, LUPARDO, LEVENBERG,
          STIRPE, GONZALEZ-ROJAS -- read once and referred to the  Committee  on
          Health  -- reported and referred to the Committee on Codes -- reported
          from committee, advanced to  a  third  reading,  amended  and  ordered
          reprinted, retaining its place on the order of third reading
 
        AN  ACT  to  amend  the  insurance law, in relation to requiring certain
          manufacturers of prescription drugs to notify  the  superintendant  of
          any  proposed  increase  of  the  wholesale  acquisition  cost of such
          prescription drugs
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The insurance law is amended by adding a new section 111-a
     2  to read as follows:
     3    § 111-a. Notification of prescription drug price increases by manufac-
     4  turers. (a) This section shall apply to a manufacturer of a prescription
     5  drug that is purchased or reimbursed in this state by any of the follow-
     6  ing:
     7    (1) An insurance company authorized in this state  to  write  accident
     8  and  health  insurance,  a  company organized pursuant to article forty-
     9  three of this chapter,  a  municipal  cooperative  health  benefit  plan
    10  established  pursuant  to article forty-seven of this chapter, an organ-
    11  ization certified pursuant to article forty-four of  the  public  health
    12  law,  an  institution  of higher education certified pursuant to section
    13  one thousand one hundred twenty-four of this chapter, or  the  New  York
    14  state  health  insurance  plan established pursuant to article eleven of
    15  the civil service law; or
    16    (2) A pharmacy benefit manager, including an entity that  directly  or
    17  through an intermediary, manages the prescription drug coverage provided
    18  by  a  health insurer under a contract or policy delivered or issued for
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00641-02-3

        A. 1707--A                          2
 
     1  delivery in this state or a health plan subject to section three hundred
     2  sixty-four-j of the social services law, including  the  processing  and
     3  payment of claims for prescription drugs, the performance of drug utili-
     4  zation  review, the processing of drug prior authorization requests, the
     5  adjudication of appeals  or  grievances  related  to  prescription  drug
     6  coverage,  contracting with network pharmacies, and controlling the cost
     7  of covered prescription drugs.
     8    (b) (1) A manufacturer of a prescription drug with a wholesale  acqui-
     9  sition  cost  of  more  than forty dollars for a course of therapy shall
    10  notify the superintendent, his or her deputy or other officer designated
    11  by the superintendent, if the increase in the wholesale acquisition cost
    12  of such prescription drug is more than sixteen  percent,  including  the
    13  proposed  increase and the cumulative increases that occurred within the
    14  previous twenty-four months prior to the planned effective date  of  the
    15  increase.    For  purposes  of  this  section,  a "course of therapy" is
    16  defined as either of the following:
    17    (i) the recommended daily dosage units of a prescription drug pursuant
    18  to its prescribing label as approved by the federal Food and Drug Admin-
    19  istration for thirty days; or
    20    (ii) the recommended daily dosage units of a prescription drug  pursu-
    21  ant  to  its  prescribing label as approved by the federal Food and Drug
    22  Administration for a normal course of treatment that is less than thirty
    23  days.
    24    (2) (i) The notice required by paragraph one of this subsection  shall
    25  be  provided  in writing to the superintendent at least sixty days prior
    26  to the planned effective date of the  increase  and  shall  include  the
    27  proposed  increase and the cumulative increases that occurred within the
    28  previous twenty-four months.
    29    (ii) The superintendent shall forthwith publish the notice required by
    30  paragraph one of this subsection on the department of financial services
    31  website within five days of its receipt.
    32    (3) (i) The notice required by paragraph one of this subsection  shall
    33  include the date of the increase, the current wholesale acquisition cost
    34  of  the  prescription drug, and the dollar amount of the future increase
    35  in the wholesale acquisition cost of the prescription drug.
    36    (ii) The notice required by paragraph one  of  this  subsection  shall
    37  include  a  statement  regarding  whether a change or improvement in the
    38  drug necessitates the price increase.  If  so,  the  manufacturer  shall
    39  describe the change or improvement.
    40    (4)  Information  supplied  by a manufacturer pursuant to this section
    41  that the manufacturer has reasonably designated as a trade secret  shall
    42  be  considered  confidential  and  a  trade secret, shall be exempt from
    43  public disclosure and copying under article six of the  public  officers
    44  law and shall not be disclosed directly or indirectly by the superinten-
    45  dent.  Notwithstanding  the foregoing sentence, the superintendent shall
    46  be permitted to disclose information in an  aggregated  format  if  such
    47  aggregate  information cannot directly or indirectly be used to identify
    48  trade secret information related  to  a  specific  manufacturer  or  the
    49  manufacturer's  prescription  drug,  including  but  not  limited to any
    50  information related to pricing for the manufacturer's prescription  drug
    51  that has been reasonably designated as a trade secret.
    52    (5) In the event that a manufacturer of a prescription drug subject to
    53  this  section  does not report the information required in paragraph one
    54  of this subsection, the  superintendent  is  authorized  to  impose  any
    55  penalty  or  remedy authorized by this chapter, after notice and a hear-
    56  ing, against such manufacturer of up to five thousand  dollars  per  day

        A. 1707--A                          3
 
     1  for  every day after the reporting period described in this section that
     2  the required information is not reported.
     3    § 2. This act shall take effect on the one hundred eightieth day after
     4  it shall have become a law.
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