SB 17: Shining a Light on Drug Pricing

SB 17 is a common-sense approach to providing transparency in drug pricing which will help ensure access to affordable prescription drugs for Californians.

Prescription drug prices continue to skyrocket year after year, despite intense public scrutiny. Drug companies can increase prices whenever they want, and for however much they want – without having to give any reason why.

77% of Americans say prescription drug cost are unreasonable, while 86% are in favor of requiring them to release information to the public about how they set prices.

SB 17 will increase transparency in prescription drug pricing through advance notice and public information about price increases.

SB 17’s advance notice and disclosure requirements for prescription drug prices will:

• Allow patients extra time to plan and make budget adjustments;
• Give purchasers time and adequate information to negotiate discounts and rebates proportionate to the increases; and
• Prevent payment for unnecessary drugs;

Advance notice is routine in health care – insurers, for example, must provide advance notice when they are going to change health plan benefits – and drug companies should be held to similar standards. SB 17 simply levels the playing field between drug companies and other health care sectors.