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She specializes in covering altered states of mind, from postpartum depression to methamphetamine-induced psychosis to the insanity defense. Her investigative series on insurance companies sidestepping mental health laws won multiple awards, including first place in beat reporting from the national Association of Health Care Journalists. She is the recipient of numerous other prizes and fellowships, including a national Edward R. Murrow award for investigative reporting, a Society of Professional Journalists award for long-form storytelling, and a Carter Center Fellowship for Mental Health Journalism.\r\n\r\nDembosky reported and produced \u003cem>Soundtrack of Silence\u003c/em>, an audio documentary about music and memory that is currently being made into a feature film by Paramount Pictures.\r\n\r\nBefore joining KQED in 2013, Dembosky covered technology and Silicon Valley for \u003cem>The Financial Times of London,\u003c/em> and contributed business and arts stories to \u003cem>Marketplace \u003c/em>and \u003cem>The New York Times.\u003c/em> She got her undergraduate degree in philosophy from Smith College and her master's in journalism from the University of California, Berkeley. 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Jerry Brown to deal the drug lobby a rare defeat, by signing legislation that would force pharmaceutical companies to justify big price hikes on drugs in California.\u003c/p>\n\u003cp>Drugmakers have spent $16.8 million on lobbying since January 2015 to kill an array of drug legislation in California, according to data from the Secretary of State's Office. For the pricing bill alone, the industry hired 45 lobbyists or firms to fight it. Against the backdrop of this opposition campaign, Brown must decide by Oct.15 whether to sign or veto the bill.\u003c/p>\n\u003cp>“If it gets signed by this governor, it's going to send shock waves throughout the country,” said state \u003ca href=\"http://sd22.senate.ca.gov/\" target=\"_blank\" rel=\"noopener\">Sen. Ed Hernandez\u003c/a> (D-West Covina), the bill's author and an optometrist. “A lot of other states have the same concerns we have, and you're going to see other states try to emulate what we did.”\u003c/p>\n\u003cp>The bill, SB 17, would require drug companies to give California 60 days notice anytime they plan to raise the price of a drug by 16 percent or more over two years. They’d also have to explain why the increases are necessary. In addition, health insurers would have to report what percentage of premium increases are caused by drug spending.\u003c/p>\n\u003cp>This is the second go-round for this drug price bill. Last summer, the same legislation crashed and burned. Its intended regulations were gutted so extensively that Hernandez decided to pull it. But two key things happened after that, he said, which set the stage for a successful second attempt.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>First, in August 2016, less than a week after Hernandez pulled the bill, a firestorm of controversy erupted nationally over the price of EpiPens spiking nearly 500 percent. The increase inspired a chorus of outrage from parents who carry the auto-injectors to save their children from life-threatening allergic reactions.\u003c/p>\n\u003cp>Momentum grew among federal lawmakers last September to do something. They called for hearings. Several proposed bills aimed to reign in drug prices across the country.\u003c/p>\n\u003cp>But then, the election of November 2016 disrupted all order of health care business in Washington. After Donald Trump was elected and Republicans took control of Congress, the number one health policy priority became repealing and replacing the Affordable Care Act.\u003c/p>\n\u003cp>As federal lawmakers focused on taking away health coverage from millions of Americans, Hernandez said he saw another opportunity for state lawmakers to act on drug prices. He reintroduced his bill in early 2017, and this time political support grew quickly, beyond the usual suspects.\u003c/p>\n\u003cp>“It wasn’t just labor,” he recalled. “It was consumer groups, it was health plans. It was the Chambers of Commerce, it was the Hospital Association.”\u003c/p>\n\u003cp>Hernandez is optimistic the governor will sign SB 17 into law. But he knows nothing’s certain. That's because of what happened on Sept. 11, the day the bill came up for a key vote in the state Assembly -- the same place it went down the year before. Hernandez thought he’d secured all the votes he needed, but at the last minute the votes started slipping away.\u003c/p>\n\u003cp>The bill needed 41 votes to pass the Assembly. During the roll call, the tally stalled around 35. Hernandez said he had plenty of colleagues willing to cast the 42nd vote, but with drug lobbyists swarming the Capitol, no legislators wanted to be the one to cast the \u003cem>deciding\u003c/em> vote.\u003c/p>\n\u003cp>“If the bill fails and you’re stuck out there, then you’re the person that’s attacking the industry,” Hernandez said.\u003c/p>\n\u003cp>On the second round of voting, the bill crossed the 41-vote threshold quickly, and the remaining lawmakers glommed on. In the end, the bill passed with 66 votes. All the Democrats and half the Republicans in the state Assembly voted for it.\u003c/p>\n\u003cp>This was much to the dismay of drug companies, which lobbied hard and issued a blitz of advertising in the last weeks before the vote.\u003c/p>\n\u003cp>The Pharmaceutical Research and Manufacturers of America, or \u003ca href=\"http://www.phrma.org/\" target=\"_blank\" rel=\"noopener\">PhRMA\u003c/a>, the industry’s trade group, argued that SB 17 was full of “false promises” that wouldn’t help consumers pay for their medicines, and would instead stifle innovation with cumbersome regulatory compliance.\u003c/p>\n\u003cp>“That takes up a lot of resources and will take up a lot of time,” said Priscilla VanderVeer, deputy vice president of public affairs for PhRMA. “And that could mean pulling resources from research and development and having to put it into the reporting structure.”\u003c/p>\n\u003cp>Experts say the drug industry doesn’t want a large influential state like California forcing them to share their data.\u003c/p>\n\u003cp>“When they have to justify in California, de facto, they have to justify it to the other 49 states,” said \u003ca href=\"https://www.jhsph.edu/faculty/directory/profile/11/gerard-anderson\" target=\"_blank\" rel=\"noopener\">Gerard Anderson\u003c/a>, a public health professor at Johns Hopkins University. “So other states essentially get to piggyback on the good efforts of California, and hopefully, because they might have difficulty justifying the price increases, everybody’s prices around the country will be lower.”\u003c/p>\n\u003cp>Other states, like Maryland, Vermont, Nevada and New York, have passed similar laws aimed at bringing more transparency to prices and curbing price gouging. But the pharmaceutical industry has fought the hardest in California. If drug companies don’t like the disclosure laws in smaller states, they could decide not to sell their drugs there, Anderson said, but the market in California is just too big to ignore.\u003c/p>\n\u003cp>“States like Maryland are just not as powerful,” he said. “It just doesn’t have the clout that a state like California has.”\u003c/p>\n\u003cp>But drugmakers are likely already devising ways to work around the California bill, Anderson warned. They’ve filed lawsuits to try to slow or stop laws from being implemented in other states, or to weaken the rules if and when they go into effect. Policy experts are watching to see what kinds of legal challenges the California law might be vulnerable to, and if it can withstand them.\u003c/p>\n\u003cp>“We learn from the mistakes of other states,” Anderson said. “Legislation is an iterative process. We have 50 states and hopefully, by some time, we'll get it right. We’re looking for California to take the lead on this.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>[documentcloud url=\"http://www.documentcloud.org/documents/4065249-CA-Rx-Lobbying-Expenditures-Jan-15-June-17.html\" width=800 height=900]\u003c/p>\n\n","blocks":[],"excerpt":"Despite fierce lobbying from the drug industry, California lawmakers sent a bill to the governor's desk that would expose drug pricing data to the whole country.","status":"publish","parent":0,"modified":1507143366,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":26,"wordCount":1106},"headData":{"title":"Other States Closely Watching Fate of California’s Drug Price Transparency Bill | KQED","description":"Despite fierce lobbying from the drug industry, California lawmakers sent a bill to the governor's desk that would expose drug pricing data to the whole country.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Other States Closely Watching Fate of California’s Drug Price Transparency Bill","datePublished":"2017-10-01T08:00:50.000Z","dateModified":"2017-10-04T18:56:06.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"361263 https://ww2.kqed.org/stateofhealth/?p=361263","disqusUrl":"https://ww2.kqed.org/stateofhealth/2017/10/01/other-states-closely-watching-fate-of-californias-drug-price-transparency-bill/","disqusTitle":"Other States Closely Watching Fate of California’s Drug Price Transparency Bill","path":"/stateofhealth/361263/other-states-closely-watching-fate-of-californias-drug-price-transparency-bill","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Insurers, hospitals and health advocates are waiting for Gov. Jerry Brown to deal the drug lobby a rare defeat, by signing legislation that would force pharmaceutical companies to justify big price hikes on drugs in California.\u003c/p>\n\u003cp>Drugmakers have spent $16.8 million on lobbying since January 2015 to kill an array of drug legislation in California, according to data from the Secretary of State's Office. For the pricing bill alone, the industry hired 45 lobbyists or firms to fight it. Against the backdrop of this opposition campaign, Brown must decide by Oct.15 whether to sign or veto the bill.\u003c/p>\n\u003cp>“If it gets signed by this governor, it's going to send shock waves throughout the country,” said state \u003ca href=\"http://sd22.senate.ca.gov/\" target=\"_blank\" rel=\"noopener\">Sen. Ed Hernandez\u003c/a> (D-West Covina), the bill's author and an optometrist. “A lot of other states have the same concerns we have, and you're going to see other states try to emulate what we did.”\u003c/p>\n\u003cp>The bill, SB 17, would require drug companies to give California 60 days notice anytime they plan to raise the price of a drug by 16 percent or more over two years. They’d also have to explain why the increases are necessary. In addition, health insurers would have to report what percentage of premium increases are caused by drug spending.\u003c/p>\n\u003cp>This is the second go-round for this drug price bill. Last summer, the same legislation crashed and burned. Its intended regulations were gutted so extensively that Hernandez decided to pull it. But two key things happened after that, he said, which set the stage for a successful second attempt.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>First, in August 2016, less than a week after Hernandez pulled the bill, a firestorm of controversy erupted nationally over the price of EpiPens spiking nearly 500 percent. The increase inspired a chorus of outrage from parents who carry the auto-injectors to save their children from life-threatening allergic reactions.\u003c/p>\n\u003cp>Momentum grew among federal lawmakers last September to do something. They called for hearings. Several proposed bills aimed to reign in drug prices across the country.\u003c/p>\n\u003cp>But then, the election of November 2016 disrupted all order of health care business in Washington. After Donald Trump was elected and Republicans took control of Congress, the number one health policy priority became repealing and replacing the Affordable Care Act.\u003c/p>\n\u003cp>As federal lawmakers focused on taking away health coverage from millions of Americans, Hernandez said he saw another opportunity for state lawmakers to act on drug prices. He reintroduced his bill in early 2017, and this time political support grew quickly, beyond the usual suspects.\u003c/p>\n\u003cp>“It wasn’t just labor,” he recalled. “It was consumer groups, it was health plans. It was the Chambers of Commerce, it was the Hospital Association.”\u003c/p>\n\u003cp>Hernandez is optimistic the governor will sign SB 17 into law. But he knows nothing’s certain. That's because of what happened on Sept. 11, the day the bill came up for a key vote in the state Assembly -- the same place it went down the year before. Hernandez thought he’d secured all the votes he needed, but at the last minute the votes started slipping away.\u003c/p>\n\u003cp>The bill needed 41 votes to pass the Assembly. During the roll call, the tally stalled around 35. Hernandez said he had plenty of colleagues willing to cast the 42nd vote, but with drug lobbyists swarming the Capitol, no legislators wanted to be the one to cast the \u003cem>deciding\u003c/em> vote.\u003c/p>\n\u003cp>“If the bill fails and you’re stuck out there, then you’re the person that’s attacking the industry,” Hernandez said.\u003c/p>\n\u003cp>On the second round of voting, the bill crossed the 41-vote threshold quickly, and the remaining lawmakers glommed on. In the end, the bill passed with 66 votes. All the Democrats and half the Republicans in the state Assembly voted for it.\u003c/p>\n\u003cp>This was much to the dismay of drug companies, which lobbied hard and issued a blitz of advertising in the last weeks before the vote.\u003c/p>\n\u003cp>The Pharmaceutical Research and Manufacturers of America, or \u003ca href=\"http://www.phrma.org/\" target=\"_blank\" rel=\"noopener\">PhRMA\u003c/a>, the industry’s trade group, argued that SB 17 was full of “false promises” that wouldn’t help consumers pay for their medicines, and would instead stifle innovation with cumbersome regulatory compliance.\u003c/p>\n\u003cp>“That takes up a lot of resources and will take up a lot of time,” said Priscilla VanderVeer, deputy vice president of public affairs for PhRMA. “And that could mean pulling resources from research and development and having to put it into the reporting structure.”\u003c/p>\n\u003cp>Experts say the drug industry doesn’t want a large influential state like California forcing them to share their data.\u003c/p>\n\u003cp>“When they have to justify in California, de facto, they have to justify it to the other 49 states,” said \u003ca href=\"https://www.jhsph.edu/faculty/directory/profile/11/gerard-anderson\" target=\"_blank\" rel=\"noopener\">Gerard Anderson\u003c/a>, a public health professor at Johns Hopkins University. “So other states essentially get to piggyback on the good efforts of California, and hopefully, because they might have difficulty justifying the price increases, everybody’s prices around the country will be lower.”\u003c/p>\n\u003cp>Other states, like Maryland, Vermont, Nevada and New York, have passed similar laws aimed at bringing more transparency to prices and curbing price gouging. But the pharmaceutical industry has fought the hardest in California. If drug companies don’t like the disclosure laws in smaller states, they could decide not to sell their drugs there, Anderson said, but the market in California is just too big to ignore.\u003c/p>\n\u003cp>“States like Maryland are just not as powerful,” he said. “It just doesn’t have the clout that a state like California has.”\u003c/p>\n\u003cp>But drugmakers are likely already devising ways to work around the California bill, Anderson warned. They’ve filed lawsuits to try to slow or stop laws from being implemented in other states, or to weaken the rules if and when they go into effect. Policy experts are watching to see what kinds of legal challenges the California law might be vulnerable to, and if it can withstand them.\u003c/p>\n\u003cp>“We learn from the mistakes of other states,” Anderson said. “Legislation is an iterative process. We have 50 states and hopefully, by some time, we'll get it right. We’re looking for California to take the lead on this.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"documentcloud","attributes":{"named":{"url":"http://www.documentcloud.org/documents/4065249-CA-Rx-Lobbying-Expenditures-Jan-15-June-17.html","width":"800","height":"900","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/361263/other-states-closely-watching-fate-of-californias-drug-price-transparency-bill","authors":["3205"],"categories":["stateofhealth_15","stateofhealth_14"],"tags":["stateofhealth_2640","stateofhealth_2519"],"featImg":"stateofhealth_361264","label":"stateofhealth"},"stateofhealth_242894":{"type":"posts","id":"stateofhealth_242894","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"242894","score":null,"sort":[1475168327000]},"guestAuthors":[],"slug":"most-americans-want-the-government-to-rein-in-prescription-drug-costs","title":"Most Americans Want the Government to Rein In Prescription Drug Costs","publishDate":1475168327,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>An overwhelming majority of Americans favor government action to restrain prescription drug prices, according to a poll released Thursday.\u003c/p>\n\u003cp>Eighty-two percent of those polled said they want Medicare to negotiate prices with the companies, which Congress does not allow. Seventy-eight percent favored limiting the amount companies can charge for high-cost drugs, such as those that fight cancer or hepatitis, according to \u003ca href=\"http://kff.org/health-reform/report/kaiser-health-tracking-poll-september-2016\" target=\"_blank\">the poll\u003c/a> from the Kaiser Family Foundation. And more than two-thirds want to let Americans buy drugs imported from Canada. Support is strong no matter the political party. (KHN is an editorially independent program of the foundation.)\u003c/p>\n\u003cp>The views come as the skyrocketing prices of some drugs are under intense scrutiny, with new evidence showing massive price hikes by some companies. Some members of Congress have called for investigations, but there is no consensus on how to effectively rein in the cost, particularly for lifesaving and unique treatments such as the EpiPen for people with deadly allergies and the hepatitis C-curing drug Sovaldi.\u003c/p>\n\u003cp>The poll found that while a majority of Americans still believed prescription drugs developed over the past two decades have improved lives, respect is dwindling. In 2008, 73 percent of Americans said the medicines had this positive effect, but that number dropped to 62 percent in August 2015. The new poll found that now 56 percent of Americans consider the drugs beneficial.\u003c/p>\n\u003cp>“Cost could be one reason why the share of Americans who say prescription drugs have made the lives of people in the U.S. better is declining,” the pollsters wrote.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The poll found that three-quarters of Americans considered drug costs unreasonable. Despite the perceived burden, the poll also discovered that 73 percent of people taking prescription medicines said it had been easy to afford their drugs. People in fair or poor health and those taking four or more drugs were more likely to say they were having trouble affording prescriptions than more healthy people.\u003c/p>\n\u003cp>Among the policy ideas the respondents were asked to consider, the most popular was requiring drug companies to explain how they set drug prices, with 86 percent support. Two-thirds of Americans favored Democratic presidential nominee Hillary Clinton’s suggestion to create an independent group to oversee drug pricing.\u003c/p>\n\u003cp>Other ideas were less popular, including two restricting consumers. A minority of those polled favored eliminating prescription drug advertisements, which has been suggested to quell the aggressive marketing companies do directly to consumers. Only 4 in 10 Americans favored requiring people to pay more if they don’t choose the least expensive version of a drug to treat their illness.\u003c/p>\n\u003cp>Separately, the poll also found that only a quarter of Americans were aware that the number of people without health insurance is at a record low. Just 9 percent went without coverage last year, according to the U.S. Census.\u003c/p>\n\u003cp>The survey found that the country is evenly divided about the success of the insurance marketplaces created by the Affordable Care Act to assist people without employer or government coverage. People in states that are running their own marketplaces were more positive about them than are people in states that rely on the federal website, healthcare.gov.\u003c/p>\n\u003cp>The survey was conducted between Sept. 14 and 20 among 1,204 people, using both land lines and cell phones. The margin of error was +/- 3 percent.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This story was produced by \u003ca href=\"http://khn.org/\" target=\"_blank\">Kaiser Health News\u003c/a>, an editorially independent program of the \u003ca href=\"http://kff.org/\" target=\"\">Kaiser Family Foundation\u003c/a>.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"The views come as the skyrocketing prices of some drugs are under intense scrutiny, with new evidence showing massive price hikes by some companies.","status":"publish","parent":0,"modified":1475185687,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":14,"wordCount":584},"headData":{"title":"Most Americans Want the Government to Rein In Prescription Drug Costs | KQED","description":"The views come as the skyrocketing prices of some drugs are under intense scrutiny, with new evidence showing massive price hikes by some companies.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Most Americans Want the Government to Rein In Prescription Drug Costs","datePublished":"2016-09-29T16:58:47.000Z","dateModified":"2016-09-29T21:48:07.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"242894 http://ww2.kqed.org/stateofhealth/?p=242894","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/09/29/most-americans-want-the-government-to-rein-in-prescription-drug-costs/","disqusTitle":"Most Americans Want the Government to Rein In Prescription Drug Costs","nprByline":"Jordan Rau\u003cbr />\u003ca href=\"http://khn.org/\">Kaiser Health News\u003c/a>","path":"/stateofhealth/242894/most-americans-want-the-government-to-rein-in-prescription-drug-costs","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>An overwhelming majority of Americans favor government action to restrain prescription drug prices, according to a poll released Thursday.\u003c/p>\n\u003cp>Eighty-two percent of those polled said they want Medicare to negotiate prices with the companies, which Congress does not allow. Seventy-eight percent favored limiting the amount companies can charge for high-cost drugs, such as those that fight cancer or hepatitis, according to \u003ca href=\"http://kff.org/health-reform/report/kaiser-health-tracking-poll-september-2016\" target=\"_blank\">the poll\u003c/a> from the Kaiser Family Foundation. And more than two-thirds want to let Americans buy drugs imported from Canada. Support is strong no matter the political party. (KHN is an editorially independent program of the foundation.)\u003c/p>\n\u003cp>The views come as the skyrocketing prices of some drugs are under intense scrutiny, with new evidence showing massive price hikes by some companies. Some members of Congress have called for investigations, but there is no consensus on how to effectively rein in the cost, particularly for lifesaving and unique treatments such as the EpiPen for people with deadly allergies and the hepatitis C-curing drug Sovaldi.\u003c/p>\n\u003cp>The poll found that while a majority of Americans still believed prescription drugs developed over the past two decades have improved lives, respect is dwindling. In 2008, 73 percent of Americans said the medicines had this positive effect, but that number dropped to 62 percent in August 2015. The new poll found that now 56 percent of Americans consider the drugs beneficial.\u003c/p>\n\u003cp>“Cost could be one reason why the share of Americans who say prescription drugs have made the lives of people in the U.S. better is declining,” the pollsters wrote.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The poll found that three-quarters of Americans considered drug costs unreasonable. Despite the perceived burden, the poll also discovered that 73 percent of people taking prescription medicines said it had been easy to afford their drugs. People in fair or poor health and those taking four or more drugs were more likely to say they were having trouble affording prescriptions than more healthy people.\u003c/p>\n\u003cp>Among the policy ideas the respondents were asked to consider, the most popular was requiring drug companies to explain how they set drug prices, with 86 percent support. Two-thirds of Americans favored Democratic presidential nominee Hillary Clinton’s suggestion to create an independent group to oversee drug pricing.\u003c/p>\n\u003cp>Other ideas were less popular, including two restricting consumers. A minority of those polled favored eliminating prescription drug advertisements, which has been suggested to quell the aggressive marketing companies do directly to consumers. Only 4 in 10 Americans favored requiring people to pay more if they don’t choose the least expensive version of a drug to treat their illness.\u003c/p>\n\u003cp>Separately, the poll also found that only a quarter of Americans were aware that the number of people without health insurance is at a record low. Just 9 percent went without coverage last year, according to the U.S. Census.\u003c/p>\n\u003cp>The survey found that the country is evenly divided about the success of the insurance marketplaces created by the Affordable Care Act to assist people without employer or government coverage. People in states that are running their own marketplaces were more positive about them than are people in states that rely on the federal website, healthcare.gov.\u003c/p>\n\u003cp>The survey was conducted between Sept. 14 and 20 among 1,204 people, using both land lines and cell phones. The margin of error was +/- 3 percent.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This story was produced by \u003ca href=\"http://khn.org/\" target=\"_blank\">Kaiser Health News\u003c/a>, an editorially independent program of the \u003ca href=\"http://kff.org/\" target=\"\">Kaiser Family Foundation\u003c/a>.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/242894/most-americans-want-the-government-to-rein-in-prescription-drug-costs","authors":["byline_stateofhealth_242894"],"categories":["stateofhealth_14","stateofhealth_2746"],"tags":["stateofhealth_2650","stateofhealth_2640","stateofhealth_2966","stateofhealth_2868","stateofhealth_2808","stateofhealth_2519","stateofhealth_2961","stateofhealth_2962"],"featImg":"stateofhealth_242896","label":"stateofhealth"},"stateofhealth_235188":{"type":"posts","id":"stateofhealth_235188","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"235188","score":null,"sort":[1473446409000]},"guestAuthors":[],"slug":"california-insurers-may-be-exploiting-outrage-over-drug-prices-to-inflate-health-plan-premiums-consumer-advocates-say","title":"California Insurers May Be Exploiting Outrage Over Drug Prices to Inflate Health Plan Premiums, Consumer Advocates Say","publishDate":1473446409,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>Rising drug costs are often blamed for driving up health insurance premiums, but a major consumer group says the numbers don’t add up — at least in California.\u003c/p>\n\u003cp>The advocacy group Consumers Union says two of California's largest insurers may be exploiting the outrage over high drug prices to artificially inflate their premiums for individual coverage under the Affordable Care Act.\u003c/p>\n\u003cp>State regulators are independently examining the issue and pressing both Anthem Inc. and Blue Shield of California to justify their rate hikes of nearly 20 percent before open enrollment this fall. Together, the insurers cover more than half of enrollees in the state’s insurance exchange, Covered California.\u003c/p>\n\u003cp>Despite the uproar over expensive hepatitis C pills and, more recently, the $600 price tag for EpiPens, the growth in spending on prescription drugs has been slowing. After a 12 percent jump in 2014, drug costs are expected to climb by roughly 7 percent next year, according to federal officials.\u003c/p>\n\u003cp>“The cost of prescription drugs is an issue,” said Dena Mendelsohn, a staff attorney at Consumers Union in San Francisco. “But pharmaceutical expenses may be the factor most open to exploitation by health plans searching for a Trojan horse with which to usher in excessively priced insurance rates.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In detailed comments recently filed with the California Department of Managed Health Care, Consumers Union asked why the cost projections submitted by Anthem and Blue Shield are so much higher than some of their competitors and other industry-wide figures. (The Consumers Union comments are included in rate filing documents \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=XbZWkzRmrkA%24\" target=\"_blank\">here\u003c/a> and \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=0QtDat9Z%2fL8%24\" target=\"_blank\">here\u003c/a>.)\u003c/p>\n\u003cp>Separately, the managed care agency has requested more information from both companies ahead of an Oct. 3 deadline to finish its review into whether their premium increases are reasonable. Blue Shield has proposed an average 19.4 percent increase for about 550,000 individual policyholders, both in the Covered California exchange and outside the marketplace. Anthem, the nation’s second-largest health insurer, wants a 17.2 percent increase for nearly 580,000 customers in and outside the exchange.\u003c/p>\n\u003cp>The state agency can pressure the insurers to reduce the increases by calling them into question, but it doesn’t have the authority to block them.\u003c/p>\n\u003cp>“We are seeking additional information and clarity from Anthem and Blue Shield on their filings,” said spokeswoman Rachel Arrezola. “We cannot discuss findings until we’ve completed our review.”\u003c/p>\n\u003cp>To make the case for substantial rate hikes, both Anthem and Blue Shield cited higher drug spending as a major factor. Anthem forecast a 17.7 percent jump in prescription drug costs for 2017; Blue Shield was close behind at 15.2 percent.\u003c/p>\n\u003cp>Blue Shield said soaring drug costs are one reason it lost money on individual policies in the first half of this year. The company said pharmacy costs on a per-member basis rose more than 30 percent last year in the individual market.\u003c/p>\n\u003cp>“We are not using any sleight of hand to justify rate increases,” said Steve Shivinsky, a spokesman for Blue Shield, a nonprofit health plan based in San Francisco. “Our numbers reflect what we’re experiencing in the market, not some national average or trend. We’re seeing a dramatic inflation in cost for run-of-the-mill drugs like EpiPen.”\u003c/p>\n\u003cp>Anthem declined to answer specific questions about its rates while the state review is pending. In a statement, the company said “factors such as increased use of medical services and added costs of drugs and medical therapies put upward pressure on rates and underscore the additional work that needs to be done to moderate the growth in health care costs.”\u003c/p>\n\u003cp>Two other big insurers in the California exchange saw things differently, according to their regulatory filings. HMO giant Kaiser Permanente predicts a 6 percent increase in drug costs next year and Health Net Inc. estimated 11 percent. Consumers Union asked regulators to seek a detailed justification for Health Net’s average rate increase of 9.4 percent as well, \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=bSEB7eCDslo%24\" target=\"_blank\">documents\u003c/a> show.\u003c/p>\n\u003cp>\u003cstrong> \u003c/strong>Other state exchanges are facing even steeper rate hikes, approaching 60 percent from some major insurers reporting heavy losses under the health law. Consumers Union said the questionable data it found in California may apply to insurers elsewhere and it urges all regulators to conduct a thorough review.\u003c/p>\n\u003cp>“We think it’s likely happening across the country with insurers using this as an opportunity to raise rates more than they should,” Mendelsohn said.\u003c/p>\n\u003cp>Many health insurers insist their losses in the individual market are substantial and higher rates are necessary to make the Obamacare marketplaces sustainable for the long term. In crafting 2017 rates, insurers said they had the benefit of detailed data on exchange customers for the first time, and it showed they had underpriced the coverage compared to the services used by members.\u003c/p>\n\u003cp>Drug costs are just one factor pushing up premiums. Another is the discontinuation of a federal reinsurance program later this year that helps insurers with large claims. Also, many companies have complained about higher than expected costs for people who sign up outside the regular open enrollment period, citing special circumstances such as a job loss.\u003c/p>\n\u003cp>Federal data and several industry reports suggest that drug costs are leveling off nationwide after a spike from several high-priced hepatitis C medications bursting on the market. Prescription drug spending grew 3.9 percent for the past 12 months through July, according to the Altarum Institute. That’s down from 8.5 percent for the previous year.\u003c/p>\n\u003cp>“We are seeing a moderation of the cost trend,” said Barbara Gniewek, a partner and health benefits expert at consulting firm PricewaterhouseCoopers. “The hepatitis C drugs were a tsunami and really caught people off guard. But I don’t see those types of blockbusters in the pipeline right now.”\u003c/p>\n\u003cp>Gniewek said the drug cost projections from Anthem and Blue Shield are outliers. “I haven’t seen numbers that high,” she said.\u003c/p>\n\u003cp>Other health policy experts, however, said there’s ample evidence that drug costs are forcing premiums higher, particularly in the more volatile individual market, and insurers might have good reason to fear the worst from drug makers.\u003c/p>\n\u003cp>“Even though there has been some moderation in drug costs, I don’t think insurers have any confidence it will last,” said Paul Ginsburg, a health economist and professor at the University of Southern California. “They are waiting for the next major drug launch. They were burned by hepatitis C and might be more conservative now.”\u003c/p>\n\u003cp>California’s health exchange negotiated the rate increases with Blue Shield and Anthem, and the agency vetted them before they were announced in July. The two big insurers drove the statewide rate increase on the exchange to 13.2 percent for next year, a sharp uptick from 4 percent average increases the previous two years.\u003c/p>\n\u003cp>Mendelsohn questioned why large insurers such as Anthem and Blue Shield can’t use their market power to better control pharmacy costs and whether the companies are fully accounting for the rebates they receive from drug manufacturers.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Shivinsky acknowledged that there’s more Blue Shield could do to address drug prices. “We’re looking at changes in our formulary and how we purchase drugs in the future,” he said.\u003c/p>\n\n","blocks":[],"excerpt":"State regulators are independently examining the issue and pressing both Anthem Inc. and Blue Shield of California to justify their rate hikes. ","status":"publish","parent":0,"modified":1473446409,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":27,"wordCount":1254},"headData":{"title":"California Insurers May Be Exploiting Outrage Over Drug Prices to Inflate Health Plan Premiums, Consumer Advocates Say | KQED","description":"State regulators are independently examining the issue and pressing both Anthem Inc. and Blue Shield of California to justify their rate hikes. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"California Insurers May Be Exploiting Outrage Over Drug Prices to Inflate Health Plan Premiums, Consumer Advocates Say","datePublished":"2016-09-09T18:40:09.000Z","dateModified":"2016-09-09T18:40:09.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"235188 http://ww2.kqed.org/stateofhealth/?p=235188","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/09/09/california-insurers-may-be-exploiting-outrage-over-drug-prices-to-inflate-health-plan-premiums-consumer-advocates-say/","disqusTitle":"California Insurers May Be Exploiting Outrage Over Drug Prices to Inflate Health Plan Premiums, Consumer Advocates Say","nprByline":"\u003cstrong>Chad Terhune\u003cbr />\u003ca href=\"http://californiahealthline.org\"/> California Healthline\u003c/a>\u003c/strong>","path":"/stateofhealth/235188/california-insurers-may-be-exploiting-outrage-over-drug-prices-to-inflate-health-plan-premiums-consumer-advocates-say","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Rising drug costs are often blamed for driving up health insurance premiums, but a major consumer group says the numbers don’t add up — at least in California.\u003c/p>\n\u003cp>The advocacy group Consumers Union says two of California's largest insurers may be exploiting the outrage over high drug prices to artificially inflate their premiums for individual coverage under the Affordable Care Act.\u003c/p>\n\u003cp>State regulators are independently examining the issue and pressing both Anthem Inc. and Blue Shield of California to justify their rate hikes of nearly 20 percent before open enrollment this fall. Together, the insurers cover more than half of enrollees in the state’s insurance exchange, Covered California.\u003c/p>\n\u003cp>Despite the uproar over expensive hepatitis C pills and, more recently, the $600 price tag for EpiPens, the growth in spending on prescription drugs has been slowing. After a 12 percent jump in 2014, drug costs are expected to climb by roughly 7 percent next year, according to federal officials.\u003c/p>\n\u003cp>“The cost of prescription drugs is an issue,” said Dena Mendelsohn, a staff attorney at Consumers Union in San Francisco. “But pharmaceutical expenses may be the factor most open to exploitation by health plans searching for a Trojan horse with which to usher in excessively priced insurance rates.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In detailed comments recently filed with the California Department of Managed Health Care, Consumers Union asked why the cost projections submitted by Anthem and Blue Shield are so much higher than some of their competitors and other industry-wide figures. (The Consumers Union comments are included in rate filing documents \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=XbZWkzRmrkA%24\" target=\"_blank\">here\u003c/a> and \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=0QtDat9Z%2fL8%24\" target=\"_blank\">here\u003c/a>.)\u003c/p>\n\u003cp>Separately, the managed care agency has requested more information from both companies ahead of an Oct. 3 deadline to finish its review into whether their premium increases are reasonable. Blue Shield has proposed an average 19.4 percent increase for about 550,000 individual policyholders, both in the Covered California exchange and outside the marketplace. Anthem, the nation’s second-largest health insurer, wants a 17.2 percent increase for nearly 580,000 customers in and outside the exchange.\u003c/p>\n\u003cp>The state agency can pressure the insurers to reduce the increases by calling them into question, but it doesn’t have the authority to block them.\u003c/p>\n\u003cp>“We are seeking additional information and clarity from Anthem and Blue Shield on their filings,” said spokeswoman Rachel Arrezola. “We cannot discuss findings until we’ve completed our review.”\u003c/p>\n\u003cp>To make the case for substantial rate hikes, both Anthem and Blue Shield cited higher drug spending as a major factor. Anthem forecast a 17.7 percent jump in prescription drug costs for 2017; Blue Shield was close behind at 15.2 percent.\u003c/p>\n\u003cp>Blue Shield said soaring drug costs are one reason it lost money on individual policies in the first half of this year. The company said pharmacy costs on a per-member basis rose more than 30 percent last year in the individual market.\u003c/p>\n\u003cp>“We are not using any sleight of hand to justify rate increases,” said Steve Shivinsky, a spokesman for Blue Shield, a nonprofit health plan based in San Francisco. “Our numbers reflect what we’re experiencing in the market, not some national average or trend. We’re seeing a dramatic inflation in cost for run-of-the-mill drugs like EpiPen.”\u003c/p>\n\u003cp>Anthem declined to answer specific questions about its rates while the state review is pending. In a statement, the company said “factors such as increased use of medical services and added costs of drugs and medical therapies put upward pressure on rates and underscore the additional work that needs to be done to moderate the growth in health care costs.”\u003c/p>\n\u003cp>Two other big insurers in the California exchange saw things differently, according to their regulatory filings. HMO giant Kaiser Permanente predicts a 6 percent increase in drug costs next year and Health Net Inc. estimated 11 percent. Consumers Union asked regulators to seek a detailed justification for Health Net’s average rate increase of 9.4 percent as well, \u003ca href=\"http://wpso.dmhc.ca.gov/RateReview/Detail.aspx?lrh=bSEB7eCDslo%24\" target=\"_blank\">documents\u003c/a> show.\u003c/p>\n\u003cp>\u003cstrong> \u003c/strong>Other state exchanges are facing even steeper rate hikes, approaching 60 percent from some major insurers reporting heavy losses under the health law. Consumers Union said the questionable data it found in California may apply to insurers elsewhere and it urges all regulators to conduct a thorough review.\u003c/p>\n\u003cp>“We think it’s likely happening across the country with insurers using this as an opportunity to raise rates more than they should,” Mendelsohn said.\u003c/p>\n\u003cp>Many health insurers insist their losses in the individual market are substantial and higher rates are necessary to make the Obamacare marketplaces sustainable for the long term. In crafting 2017 rates, insurers said they had the benefit of detailed data on exchange customers for the first time, and it showed they had underpriced the coverage compared to the services used by members.\u003c/p>\n\u003cp>Drug costs are just one factor pushing up premiums. Another is the discontinuation of a federal reinsurance program later this year that helps insurers with large claims. Also, many companies have complained about higher than expected costs for people who sign up outside the regular open enrollment period, citing special circumstances such as a job loss.\u003c/p>\n\u003cp>Federal data and several industry reports suggest that drug costs are leveling off nationwide after a spike from several high-priced hepatitis C medications bursting on the market. Prescription drug spending grew 3.9 percent for the past 12 months through July, according to the Altarum Institute. That’s down from 8.5 percent for the previous year.\u003c/p>\n\u003cp>“We are seeing a moderation of the cost trend,” said Barbara Gniewek, a partner and health benefits expert at consulting firm PricewaterhouseCoopers. “The hepatitis C drugs were a tsunami and really caught people off guard. But I don’t see those types of blockbusters in the pipeline right now.”\u003c/p>\n\u003cp>Gniewek said the drug cost projections from Anthem and Blue Shield are outliers. “I haven’t seen numbers that high,” she said.\u003c/p>\n\u003cp>Other health policy experts, however, said there’s ample evidence that drug costs are forcing premiums higher, particularly in the more volatile individual market, and insurers might have good reason to fear the worst from drug makers.\u003c/p>\n\u003cp>“Even though there has been some moderation in drug costs, I don’t think insurers have any confidence it will last,” said Paul Ginsburg, a health economist and professor at the University of Southern California. “They are waiting for the next major drug launch. They were burned by hepatitis C and might be more conservative now.”\u003c/p>\n\u003cp>California’s health exchange negotiated the rate increases with Blue Shield and Anthem, and the agency vetted them before they were announced in July. The two big insurers drove the statewide rate increase on the exchange to 13.2 percent for next year, a sharp uptick from 4 percent average increases the previous two years.\u003c/p>\n\u003cp>Mendelsohn questioned why large insurers such as Anthem and Blue Shield can’t use their market power to better control pharmacy costs and whether the companies are fully accounting for the rebates they receive from drug manufacturers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Shivinsky acknowledged that there’s more Blue Shield could do to address drug prices. “We’re looking at changes in our formulary and how we purchase drugs in the future,” he said.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/235188/california-insurers-may-be-exploiting-outrage-over-drug-prices-to-inflate-health-plan-premiums-consumer-advocates-say","authors":["byline_stateofhealth_235188"],"categories":["stateofhealth_2442","stateofhealth_15"],"tags":["stateofhealth_2698","stateofhealth_228","stateofhealth_368","stateofhealth_2650","stateofhealth_2640","stateofhealth_2808","stateofhealth_2519"],"featImg":"stateofhealth_235210","label":"stateofhealth"},"stateofhealth_223329":{"type":"posts","id":"stateofhealth_223329","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"223329","score":null,"sort":[1470851958000]},"guestAuthors":[],"slug":"drug-price-transparency-laws-may-not-drive-down-spiraling-costs-for-consumers","title":"Drug Price Transparency Laws May Not Drive Down Spiraling Costs for Consumers","publishDate":1470851958,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>Will forcing drugmakers to disclose big price hikes and new high-cost treatments help keep medications affordable for consumers?\u003c/p>\n\u003cp>That’s the premise behind legislation considered this year in roughly a dozen states, including California. In addition, President Barack Obama proposed in his 2017 budget that the Department of Health and Human Services require drugmakers to disclose their research and development costs.\u003c/p>\n\u003cp>But some researchers and consumer advocates say these “drug price transparency” measures likely won’t bring spiraling costs down by themselves — other policy changes will be needed.\u003c/p>\n\u003cp>“By themselves, I don’t think it’s likely the [measures] will have a big impact,” said Chapin White, a senior researcher and health care cost transparency expert at the Santa Monica-based think tank RAND Corp. Chapin said getting more information is only part of deciding “what’s a fair amount to pay” for pharmaceuticals.\u003c/p>\n\u003cp>He suggested, however, that such laws could prevent pharmaceutical companies from raising prices “for no reason.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>On Wednesday, California state lawmakers will review a \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1010\" target=\"_blank\">bill\u003c/a> that would require pharmaceutical companies to give advance notice if they plan to introduce drugs that cost $10,000 or more (per year or per course of treatment) or raise the price on existing medications by more than certain percentages\u003cstrong>.\u003c/strong> They also would be obliged to justify those costs within 30 days — although the legislation is not clear on how they’d need to do so.\u003c/p>\n\u003cp>The bill also would require health plans to report annually how much they spend on prescription drugs.\u003c/p>\n\u003cp>Proposals in other states have included requiring pharmaceutical companies to report closely held research and development costs to government agencies, creating pharmaceutical review commissions and allowing government health programs not to cover certain high-priced drugs.\u003c/p>\n\u003cp>Most of the measures have stalled this year, except in California, New Jersey and Pennsylvania, according to the National Council of State Legislatures. Supporters of such legislation attribute their failure to proceed in most states to strong pressure from the pharmaceutical industry.\u003c/p>\n\u003cp>Rising prescription drug costs have been hotly debated, especially since Martin Shkreli, a now-disgraced pharmaceutical executive, obtained the manufacturing license for a lifesaving antiparasitic drug and last year hiked its price by more than 5,000 percent. With that episode as an extreme example, policymakers have been searching for ways to prevent price gouging.\u003c/p>\n\u003cp>Supporters of the California bill say advance notice of price increases can help drug purchasers negotiate the best deal for consumers.\u003c/p>\n\u003cp>But drug companies say the legislation could prompt “hoarding” by large pharmacies because once they learned of a price hike, they could buy up the existing cheaper supply.\u003c/p>\n\u003cp>The industry says transparency measures threaten their fundamental business interests.\u003c/p>\n\u003cp>“Disclosing that information is revealing very commercially sensitive information to a large population, which could frankly undermine competition and yield unintended consequences,” said Priscilla VanderVeer, deputy vice president of state communications at the Pharmaceutical Research and Manufacturers of America (PhRMA).\u003c/p>\n\u003cp>VanderVeer said a drug’s sticker price does not give an accurate picture of what it actually costs, since the price is almost always negotiated down.\u003c/p>\n\u003cp>Chapin, the RAND senior researcher, noted that current patent rules give drugmakers the power to charge high prices as a reward for innovation.\u003c/p>\n\u003cp>“Through the system of patent protection, we’ve created monopoly power [for] pharmaceutical companies,” he said, but added that he can’t imagine that system being scrapped.\u003c/p>\n\u003cp>Instead, he said, drug price discussions should focus on the “reasonable bounds” of pricing, and the cost of a medication should reflect how much it advances the practice of medicine.\u003c/p>\n\u003cp>“There has to be some limit,” said Chapin. “It shouldn’t be the case that [a] firm can just charge a sky’s-the-limit price.”\u003c/p>\n\u003cp>Ameet Sarpatwari, a professor at Harvard Medical School, said transparency measures could arm lawmakers with information to help them enact other, more fundamental policy changes. Actually controlling drug prices would likely require federal action, he said, such as allowing state Medicaid programs to keep high-cost drugs off their formularies.\u003c/p>\n\u003cp>California Public Employees’ Retirement System (CalPERS), which in 2014 spent $1.8 billion on prescription drugs for its 1.4 million members, says it already benefits from its own efforts to collect pharmacy spending information from health plans every year. That data has helped the agency decide how much more to charge enrollees for drugs and to determine the list of drugs it covers.\u003c/p>\n\u003cp>CalPERS supports California’s transparency bill, calling it a first step towards bringing drug prices down.\u003c/p>\n\u003cp>“You can’t ask the questions relative to costs when folks don’t know what the costs are,” said Doug McKeever, CalPERS’ deputy executive officer for benefit programs policy and planning. “It gives us opportunities to collectively say, ‘how can we work together collaboratively to address these cost increases?’”\u003c/p>\n\u003cp>For now, CalPERS’ cost-cutting measures have helped protect the agency’s bottom line primarily by requiring members to pay more or have less choice. But the agency believes more widespread drug price transparency might allow health care payers to negotiate better prices later on, easing the pain for consumers.\u003c/p>\n\u003cp>Public Citizen, a national public advocacy group, supports state transparency measures as well, but it says they should have enough teeth to “open up [the] black box” of research and development costs. Without that, policymakers would not have adequate information to vet industry claims about costs, said Steven Knievel, an organizer with Public Citizen’s Global Access to Medicines program.\u003c/p>\n\u003cp>California’s drug price transparency measure would be more useful, Knievel said, if it required disclosure of such costs, which some other state measures have called for.\u003c/p>\n\u003cp>If policymakers don’t push to make information available as broadly as necessary to change the drug price conversation, Knievel added, proposed transparency measures risk becoming no more than “PR for policymakers that want to be seen as tough on the drug companies.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The group is also pushing for federal action to suppress drug prices. It says it wants government officials to step in when drugs developed using public funds are not sold on “reasonable terms.”\u003c/p>\n\n","blocks":[],"excerpt":"California is one of a dozen states considering measures to force drug-makers to disclose big price hikes and new high-cost treatments. ","status":"publish","parent":0,"modified":1470851958,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":30,"wordCount":1073},"headData":{"title":"Drug Price Transparency Laws May Not Drive Down Spiraling Costs for Consumers | KQED","description":"California is one of a dozen states considering measures to force drug-makers to disclose big price hikes and new high-cost treatments. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Drug Price Transparency Laws May Not Drive Down Spiraling Costs for Consumers","datePublished":"2016-08-10T17:59:18.000Z","dateModified":"2016-08-10T17:59:18.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"223329 http://ww2.kqed.org/stateofhealth/?p=223329","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/08/10/drug-price-transparency-laws-may-not-drive-down-spiraling-costs-for-consumers/","disqusTitle":"Drug Price Transparency Laws May Not Drive Down Spiraling Costs for Consumers","nprByline":" Pauline Bartolone\u003cbr />\u003ca href=\"http://californiahealthline.org/\">California Healthline\u003c/a>","path":"/stateofhealth/223329/drug-price-transparency-laws-may-not-drive-down-spiraling-costs-for-consumers","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Will forcing drugmakers to disclose big price hikes and new high-cost treatments help keep medications affordable for consumers?\u003c/p>\n\u003cp>That’s the premise behind legislation considered this year in roughly a dozen states, including California. In addition, President Barack Obama proposed in his 2017 budget that the Department of Health and Human Services require drugmakers to disclose their research and development costs.\u003c/p>\n\u003cp>But some researchers and consumer advocates say these “drug price transparency” measures likely won’t bring spiraling costs down by themselves — other policy changes will be needed.\u003c/p>\n\u003cp>“By themselves, I don’t think it’s likely the [measures] will have a big impact,” said Chapin White, a senior researcher and health care cost transparency expert at the Santa Monica-based think tank RAND Corp. Chapin said getting more information is only part of deciding “what’s a fair amount to pay” for pharmaceuticals.\u003c/p>\n\u003cp>He suggested, however, that such laws could prevent pharmaceutical companies from raising prices “for no reason.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>On Wednesday, California state lawmakers will review a \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1010\" target=\"_blank\">bill\u003c/a> that would require pharmaceutical companies to give advance notice if they plan to introduce drugs that cost $10,000 or more (per year or per course of treatment) or raise the price on existing medications by more than certain percentages\u003cstrong>.\u003c/strong> They also would be obliged to justify those costs within 30 days — although the legislation is not clear on how they’d need to do so.\u003c/p>\n\u003cp>The bill also would require health plans to report annually how much they spend on prescription drugs.\u003c/p>\n\u003cp>Proposals in other states have included requiring pharmaceutical companies to report closely held research and development costs to government agencies, creating pharmaceutical review commissions and allowing government health programs not to cover certain high-priced drugs.\u003c/p>\n\u003cp>Most of the measures have stalled this year, except in California, New Jersey and Pennsylvania, according to the National Council of State Legislatures. Supporters of such legislation attribute their failure to proceed in most states to strong pressure from the pharmaceutical industry.\u003c/p>\n\u003cp>Rising prescription drug costs have been hotly debated, especially since Martin Shkreli, a now-disgraced pharmaceutical executive, obtained the manufacturing license for a lifesaving antiparasitic drug and last year hiked its price by more than 5,000 percent. With that episode as an extreme example, policymakers have been searching for ways to prevent price gouging.\u003c/p>\n\u003cp>Supporters of the California bill say advance notice of price increases can help drug purchasers negotiate the best deal for consumers.\u003c/p>\n\u003cp>But drug companies say the legislation could prompt “hoarding” by large pharmacies because once they learned of a price hike, they could buy up the existing cheaper supply.\u003c/p>\n\u003cp>The industry says transparency measures threaten their fundamental business interests.\u003c/p>\n\u003cp>“Disclosing that information is revealing very commercially sensitive information to a large population, which could frankly undermine competition and yield unintended consequences,” said Priscilla VanderVeer, deputy vice president of state communications at the Pharmaceutical Research and Manufacturers of America (PhRMA).\u003c/p>\n\u003cp>VanderVeer said a drug’s sticker price does not give an accurate picture of what it actually costs, since the price is almost always negotiated down.\u003c/p>\n\u003cp>Chapin, the RAND senior researcher, noted that current patent rules give drugmakers the power to charge high prices as a reward for innovation.\u003c/p>\n\u003cp>“Through the system of patent protection, we’ve created monopoly power [for] pharmaceutical companies,” he said, but added that he can’t imagine that system being scrapped.\u003c/p>\n\u003cp>Instead, he said, drug price discussions should focus on the “reasonable bounds” of pricing, and the cost of a medication should reflect how much it advances the practice of medicine.\u003c/p>\n\u003cp>“There has to be some limit,” said Chapin. “It shouldn’t be the case that [a] firm can just charge a sky’s-the-limit price.”\u003c/p>\n\u003cp>Ameet Sarpatwari, a professor at Harvard Medical School, said transparency measures could arm lawmakers with information to help them enact other, more fundamental policy changes. Actually controlling drug prices would likely require federal action, he said, such as allowing state Medicaid programs to keep high-cost drugs off their formularies.\u003c/p>\n\u003cp>California Public Employees’ Retirement System (CalPERS), which in 2014 spent $1.8 billion on prescription drugs for its 1.4 million members, says it already benefits from its own efforts to collect pharmacy spending information from health plans every year. That data has helped the agency decide how much more to charge enrollees for drugs and to determine the list of drugs it covers.\u003c/p>\n\u003cp>CalPERS supports California’s transparency bill, calling it a first step towards bringing drug prices down.\u003c/p>\n\u003cp>“You can’t ask the questions relative to costs when folks don’t know what the costs are,” said Doug McKeever, CalPERS’ deputy executive officer for benefit programs policy and planning. “It gives us opportunities to collectively say, ‘how can we work together collaboratively to address these cost increases?’”\u003c/p>\n\u003cp>For now, CalPERS’ cost-cutting measures have helped protect the agency’s bottom line primarily by requiring members to pay more or have less choice. But the agency believes more widespread drug price transparency might allow health care payers to negotiate better prices later on, easing the pain for consumers.\u003c/p>\n\u003cp>Public Citizen, a national public advocacy group, supports state transparency measures as well, but it says they should have enough teeth to “open up [the] black box” of research and development costs. Without that, policymakers would not have adequate information to vet industry claims about costs, said Steven Knievel, an organizer with Public Citizen’s Global Access to Medicines program.\u003c/p>\n\u003cp>California’s drug price transparency measure would be more useful, Knievel said, if it required disclosure of such costs, which some other state measures have called for.\u003c/p>\n\u003cp>If policymakers don’t push to make information available as broadly as necessary to change the drug price conversation, Knievel added, proposed transparency measures risk becoming no more than “PR for policymakers that want to be seen as tough on the drug companies.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>The group is also pushing for federal action to suppress drug prices. It says it wants government officials to step in when drugs developed using public funds are not sold on “reasonable terms.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/223329/drug-price-transparency-laws-may-not-drive-down-spiraling-costs-for-consumers","authors":["byline_stateofhealth_223329"],"categories":["stateofhealth_14"],"tags":["stateofhealth_2640","stateofhealth_2808","stateofhealth_2519","stateofhealth_2842"],"featImg":"stateofhealth_223330","label":"stateofhealth"},"stateofhealth_205539":{"type":"posts","id":"stateofhealth_205539","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"205539","score":null,"sort":[1467207553000]},"guestAuthors":[],"slug":"california-drug-price-transparency-bill-clears-key-health-committee","title":"California Drug Price Transparency Bill Clears Key Health Committee","publishDate":1467207553,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>A measure that would compel pharmaceutical companies to disclose and justify drug price increases overcame a show of skepticism by Democratic lawmakers on Tuesday afternoon, passing the Assembly Health Committee 12-4 on a party-line vote.\u003c/p>\n\u003cp>The \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1010\" target=\"_blank\">bill\u003c/a> — softened from earlier versions — would require drug manufacturers to notify state agencies and health insurers within days of federal approval for a new drug that cost $10,000 or more per year or for one course of treatment.\u003c/p>\n\u003cp>Drugmakers would be required to provide 30 days’ notice before increasing the price of a drug. The pharmaceutical industry also would have to justify the price increases as well as the introduction of high-cost drugs.\u003c/p>\n\u003cp>“This bill renders prescription drugs in line with other sectors of health care,” said the bill’s author, state Sen. Ed Hernandez, D-West Covina, who is chairman of the Senate Committee on Health. Hernandez said other industries, such as health insurance, already face pricing and transparency rules.\u003c/p>\n\u003cp>California is among about a dozen states that have considered proposals this year to impose greater price transparency on pharmaceutical companies, as dramatic drug price hikes make headlines and stoke public ire.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The bill’s supporters say advance notice of a price increase can help drug purchasers negotiate the best deal for consumers. Pharmaceutical companies had \u003ca href=\"http://californiahealthline.org/news/california-drug-price-measure-fiercely-opposed-by-pharmaceutical-industry/\" target=\"_blank\">criticized that provision\u003c/a>, saying it could prompt “hoarding” by large pharmacies.\u003c/p>\n\u003cp>A few lawmakers commented on the complexity of the measure, seeming overwhelmed by the topic of pharmaceutical pricing and uncertain how the bill would affect it.\u003c/p>\n\u003cp>“I’m very afraid that this is only going to disrupt the marketplace and further increase the prices,” said Assemblyman Adrin Nazarian, D-Sherman Oaks. He ended up supporting the bill.\u003c/p>\n\u003cp>Assemblyman Freddie Rodriguez, D-Pomona, asked if the bill would cause health care premiums to go down.\u003c/p>\n\u003cp>“I’ve got a lot of different answers, so it’s hard for me to grasp it,” said Rodriguez. “I’ve been trying to look at this for the last probably two weeks,” he said. He, too, voted for the measure.\u003c/p>\n\u003cp>Before the hearing, Hernandez said lawmakers on the committee had been asking for amendments to the bill in favor of “what pharma is asking for.” He said he wasn’t sure whether the measure would have enough support to win committee approval.\u003c/p>\n\u003cp>Over the past week, the bill was altered to ease the proposed rules for the pharmaceutical industry. The advance notice drugmakers would have to give before a price increase was shortened from 60 to 30 days. A requirement to hold a yearly public hearing on drug price increases was deleted. And pharmaceutical companies would only have to notify buyers of the affected drugs.\u003c/p>\n\u003cp>The California Life Sciences Association said it had been seeking amendments on the measure over the past week. The CLSA spent $492,936 on lobbying the California legislature from January 2015 through March of this year — more than any other pharmaceutical company or trade association.\u003c/p>\n\u003cp>At the hearing, Mike Carpenter, a lobbyist speaking on behalf of CLSA, said the bill “will provide a distorted picture of the role that medicines play in overall health care costs.” He said the legislation seeks selective information that won’t “meaningfully inform” the dialogue about controlling health care spending.\u003c/p>\n\u003cp>Fred Noteware, a lobbyist speaking on behalf of the Pharmaceutical Research and Manufacturers Association (PhRMA) said the measure creates “unnecessary and onerous” requirements and doesn’t provide insight into the role health plans and pharmaceutical benefits managers (PBMs) play in pharmaceutical spending.\u003c/p>\n\u003cp>However, the bill was amended to require disclosures about and reporting from PBMs, which are companies that contract with health insurers and state agencies to negotiate lower drug prices with manufacturers.\u003c/p>\n\u003cp>Insurers backed the bill, even though it requires health plans to disclose how much they spend on prescription drugs.\u003c/p>\n\u003cp>The bill moves next to the Assembly Appropriations Committee, and if it passes, it would then go to the assembly floor for a vote.\u003c/p>\n\u003cp>If the legislation becomes law, “we will be continuing this discussion on a national level,” Hernandez said.\u003c/p>\n\u003cp>But Assemblymember David Chiu, D-San Francisco, who introduced a different drug price transparency measure last year that never made it to a vote, said getting the political support to pass the bill may be tricky.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“These fights are very unpredictable,” he said.\u003c/p>\n\n","blocks":[],"excerpt":"The measure gained votes after being amended to address drugmakers' concerns.","status":"publish","parent":0,"modified":1467207553,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":23,"wordCount":760},"headData":{"title":"California Drug Price Transparency Bill Clears Key Health Committee | KQED","description":"The measure gained votes after being amended to address drugmakers' concerns.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"California Drug Price Transparency Bill Clears Key Health Committee","datePublished":"2016-06-29T13:39:13.000Z","dateModified":"2016-06-29T13:39:13.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"205539 http://ww2.kqed.org/stateofhealth/?p=205539","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/06/29/california-drug-price-transparency-bill-clears-key-health-committee/","disqusTitle":"California Drug Price Transparency Bill Clears Key Health Committee","nprByline":"Pauline Bartolone, California Healthline","path":"/stateofhealth/205539/california-drug-price-transparency-bill-clears-key-health-committee","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>A measure that would compel pharmaceutical companies to disclose and justify drug price increases overcame a show of skepticism by Democratic lawmakers on Tuesday afternoon, passing the Assembly Health Committee 12-4 on a party-line vote.\u003c/p>\n\u003cp>The \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1010\" target=\"_blank\">bill\u003c/a> — softened from earlier versions — would require drug manufacturers to notify state agencies and health insurers within days of federal approval for a new drug that cost $10,000 or more per year or for one course of treatment.\u003c/p>\n\u003cp>Drugmakers would be required to provide 30 days’ notice before increasing the price of a drug. The pharmaceutical industry also would have to justify the price increases as well as the introduction of high-cost drugs.\u003c/p>\n\u003cp>“This bill renders prescription drugs in line with other sectors of health care,” said the bill’s author, state Sen. Ed Hernandez, D-West Covina, who is chairman of the Senate Committee on Health. Hernandez said other industries, such as health insurance, already face pricing and transparency rules.\u003c/p>\n\u003cp>California is among about a dozen states that have considered proposals this year to impose greater price transparency on pharmaceutical companies, as dramatic drug price hikes make headlines and stoke public ire.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The bill’s supporters say advance notice of a price increase can help drug purchasers negotiate the best deal for consumers. Pharmaceutical companies had \u003ca href=\"http://californiahealthline.org/news/california-drug-price-measure-fiercely-opposed-by-pharmaceutical-industry/\" target=\"_blank\">criticized that provision\u003c/a>, saying it could prompt “hoarding” by large pharmacies.\u003c/p>\n\u003cp>A few lawmakers commented on the complexity of the measure, seeming overwhelmed by the topic of pharmaceutical pricing and uncertain how the bill would affect it.\u003c/p>\n\u003cp>“I’m very afraid that this is only going to disrupt the marketplace and further increase the prices,” said Assemblyman Adrin Nazarian, D-Sherman Oaks. He ended up supporting the bill.\u003c/p>\n\u003cp>Assemblyman Freddie Rodriguez, D-Pomona, asked if the bill would cause health care premiums to go down.\u003c/p>\n\u003cp>“I’ve got a lot of different answers, so it’s hard for me to grasp it,” said Rodriguez. “I’ve been trying to look at this for the last probably two weeks,” he said. He, too, voted for the measure.\u003c/p>\n\u003cp>Before the hearing, Hernandez said lawmakers on the committee had been asking for amendments to the bill in favor of “what pharma is asking for.” He said he wasn’t sure whether the measure would have enough support to win committee approval.\u003c/p>\n\u003cp>Over the past week, the bill was altered to ease the proposed rules for the pharmaceutical industry. The advance notice drugmakers would have to give before a price increase was shortened from 60 to 30 days. A requirement to hold a yearly public hearing on drug price increases was deleted. And pharmaceutical companies would only have to notify buyers of the affected drugs.\u003c/p>\n\u003cp>The California Life Sciences Association said it had been seeking amendments on the measure over the past week. The CLSA spent $492,936 on lobbying the California legislature from January 2015 through March of this year — more than any other pharmaceutical company or trade association.\u003c/p>\n\u003cp>At the hearing, Mike Carpenter, a lobbyist speaking on behalf of CLSA, said the bill “will provide a distorted picture of the role that medicines play in overall health care costs.” He said the legislation seeks selective information that won’t “meaningfully inform” the dialogue about controlling health care spending.\u003c/p>\n\u003cp>Fred Noteware, a lobbyist speaking on behalf of the Pharmaceutical Research and Manufacturers Association (PhRMA) said the measure creates “unnecessary and onerous” requirements and doesn’t provide insight into the role health plans and pharmaceutical benefits managers (PBMs) play in pharmaceutical spending.\u003c/p>\n\u003cp>However, the bill was amended to require disclosures about and reporting from PBMs, which are companies that contract with health insurers and state agencies to negotiate lower drug prices with manufacturers.\u003c/p>\n\u003cp>Insurers backed the bill, even though it requires health plans to disclose how much they spend on prescription drugs.\u003c/p>\n\u003cp>The bill moves next to the Assembly Appropriations Committee, and if it passes, it would then go to the assembly floor for a vote.\u003c/p>\n\u003cp>If the legislation becomes law, “we will be continuing this discussion on a national level,” Hernandez said.\u003c/p>\n\u003cp>But Assemblymember David Chiu, D-San Francisco, who introduced a different drug price transparency measure last year that never made it to a vote, said getting the political support to pass the bill may be tricky.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“These fights are very unpredictable,” he said.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/205539/california-drug-price-transparency-bill-clears-key-health-committee","authors":["byline_stateofhealth_205539"],"categories":["stateofhealth_13"],"tags":["stateofhealth_2640","stateofhealth_2519"],"featImg":"stateofhealth_183750","label":"stateofhealth"},"stateofhealth_163375":{"type":"posts","id":"stateofhealth_163375","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"163375","score":null,"sort":[1458703412000]},"guestAuthors":[],"slug":"pharmaceutical-companies-hiked-price-on-aid-in-dying-drug","title":"Pharmaceutical Companies Hiked Price on Aid in Dying Drug","publishDate":1458703412,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>When California's\u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/10/05/governor-brown-signs-physician-assisted-suicide-bill-into-law-california-right-to-die/\" target=\"_blank\"> aid-in-dying law\u003c/a> takes effect this June, terminally ill patients who decide to end their lives could be faced with a hefty bill for the lethal medication. It retails for more than $3,000.\u003c/p>\n\u003cp>Valeant Pharmaceuticals, the company that makes the drug most commonly used in physician-assisted suicide, doubled the drug's price last year, one month after California lawmakers \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/01/22/california-bill-would-allow-terminally-ill-to-end-their-own-lives/\" target=\"_blank\">proposed legalizing the practice\u003c/a>.\u003c/p>\n\u003cp>“It’s just pharmaceutical company greed,” said David Grube, a family doctor in Oregon, where physician-assisted death has been legal for 20 years.\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/254659907\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>The drug is Seconal, or secobarbital, its generic name. Originally developed in the 1930s as a sleeping pill, it fell out of favor when people died from taking too much, or from taking it in combination with alcohol. But when intended as a lethal medication to hasten the death of someone suffering from a terminal disease, Seconal is the drug of choice.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“It works very quickly and very gently,” Grube says. “People fall asleep with no complications. It's a very gentle passing.”\u003c/p>\n\u003cp>In 2009, Grube remembers the price of a lethal dose of Seconal -- 100 capsules -- was less than $200. Over the next six years, it shot up to $1,500, according to drug price databases Medi-Span and First Databank. Then Valeant bought Seconal last February and immediately doubled the price to $3,000.\u003c/p>\n\u003cp>Most drug companies justify such hikes by pointing to high research costs. But Grube says that’s not the case with Seconal. It’s been around for 80 years.\u003c/p>\n\u003cp>“It’s not a complicated thing to make, there’s no research being done on it, there’s no development,” he says. “That to me is unconscionable.”\u003c/p>\n\u003cp>Valeant bought several other drugs at the same time it bought Seconal, raising some of those prices as much as 500 percent. That sparked a \u003ca href=\"http://www.npr.org/sections/health-shots/2015/12/09/458976680/senate-questions-egregious-price-hikes-for-specialty-medicines\" target=\"_blank\">congressional investigation\u003c/a> into its pricing practices. (The CEO resigned Monday amid an accounting controversy).\u003c/p>\n\u003caside class=\"pullquote alignright\">'You are literally, at that point, taking the money from children.'\u003ccite>Elizabeth Wallner, stage 4 cancer patient\u003c/cite>\u003c/aside>\n\u003cp>“Valeant sets prices for drugs based on a number of factors,” the company said in a statement, including the cost of developing or acquiring the drug, the availability of generics and the benefits of the drug compared with costly alternative treatments. “When possible, we offer patient assistance programs to mitigate the effects of price adjustments and keep out-of-pocket costs affordable for patients.”\u003c/p>\n\u003cp>The most likely explanation for raising the price of Seconal is the lack of generics, says Mick Kolassa, founding partner of Medical Marketing Economics, a firm that advises drug companies on how to price and market their drugs.\u003c/p>\n\u003cp>Seconal went off patent in the early '90s. There were some generics for a while, but then demand shrank and manufacturers abandoned them.\u003c/p>\n\u003cp>“So that meant when the current company bought it, they didn't have any generic competition, simply because the market got so small that it left,” Kolassa said. “So in situations like that, a company can acquire it and raise the price.”\u003c/p>\n\u003cp>Kolassa says it’s also possible that the demand for even the brand-name drug is so low that it’s hard to recoup the costs of making and selling it.\u003c/p>\n\u003cp>“Here's a company that said, well, we can raise the price, keep it on the market and make some money with it,” he said. “Or we can walk away and the product goes away.”\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/254347186\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>Whatever the explanation, what cancer patients like Elizabeth Wallner see is a drug company taking advantage. She has one word to describe the pharmaceutical executive who decided to double the price of Seconal: “Scumbag.”\u003c/p>\n\u003cp>Wallner was diagnosed with Stage 4 colon cancer five years ago. It spread to her liver and lungs. She always thought that if her suffering became too unbearable, she would consider ending her life. But she never thought about the price tag of the lethal drug.\u003c/p>\n\u003cp>“You're going to make money off my death,” she said.\u003c/p>\n\u003cp>She’s most worried about her son.\u003c/p>\n\u003cp>“You are literally, at that point, taking the money from children,” she said. “Everything I have, if I’m going to die tomorrow, everything I have will be left to my son who will be 20 years old and almost 100 percent on his own.”\u003c/p>\n\u003cp>[contextly_sidebar id=\"idxXpDM3MGhhfWlN5bJA10v3JP8sAgQZ\"]\u003c/p>\n\u003cp>Under the California aid-in-dying law, it is optional for health insurance companies to cover the costs of the practice. Most private insurers plan to do so, according to the California Association of Health Plans. So does the state’s \u003ca href=\"http://www.usnews.com/news/articles/2016-03-21/in-california-government-to-pick-up-the-tab-for-death-with-dignity\" target=\"_blank\">Medicaid program\u003c/a>.\u003c/p>\n\u003cp>But for patients who aren’t covered, there is a cheaper alternative: a three-part drug cocktail that can be mixed by a compounding pharmacy for about $400.\u003c/p>\n\u003cp>Grube says the cocktail works just as well, but doctors usually don't prescribe it because of the hassle some patients have to go through to get it. Seconal, on the other hand, is a ready-made pill, routinely available at most retail drugstores.\u003c/p>\n\u003cp>He says advocacy groups like Compassion & Choices are working on campaigns to reduce drug costs and to \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/10/12/education-push-to-help-doctors-field-patients-assisted-death-requests/\" target=\"_blank\">educate doctors\u003c/a> and patients about the law.\u003c/p>\n\u003cp>“My dream is that any Californian who will choose aid in dying would have few burdens or barriers to jump through,” Grube said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Katie Orr contributed reporting from Sacramento. \u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"The drug's price went from $200 in 2009 to $3,000 today. Doctors and patients want to know why.","status":"publish","parent":0,"modified":1458768491,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":31,"wordCount":1007},"headData":{"title":"Pharmaceutical Companies Hiked Price on Aid in Dying Drug | KQED","description":"The drug's price went from $200 in 2009 to $3,000 today. Doctors and patients want to know why.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Pharmaceutical Companies Hiked Price on Aid in Dying Drug","datePublished":"2016-03-23T03:23:32.000Z","dateModified":"2016-03-23T21:28:11.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"163375 http://ww2.kqed.org/stateofhealth/?p=163375","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/03/22/pharmaceutical-companies-hiked-price-on-aid-in-dying-drug/","disqusTitle":"Pharmaceutical Companies Hiked Price on Aid in Dying Drug","path":"/stateofhealth/163375/pharmaceutical-companies-hiked-price-on-aid-in-dying-drug","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>When California's\u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/10/05/governor-brown-signs-physician-assisted-suicide-bill-into-law-california-right-to-die/\" target=\"_blank\"> aid-in-dying law\u003c/a> takes effect this June, terminally ill patients who decide to end their lives could be faced with a hefty bill for the lethal medication. It retails for more than $3,000.\u003c/p>\n\u003cp>Valeant Pharmaceuticals, the company that makes the drug most commonly used in physician-assisted suicide, doubled the drug's price last year, one month after California lawmakers \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/01/22/california-bill-would-allow-terminally-ill-to-end-their-own-lives/\" target=\"_blank\">proposed legalizing the practice\u003c/a>.\u003c/p>\n\u003cp>“It’s just pharmaceutical company greed,” said David Grube, a family doctor in Oregon, where physician-assisted death has been legal for 20 years.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/254659907&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/254659907'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The drug is Seconal, or secobarbital, its generic name. Originally developed in the 1930s as a sleeping pill, it fell out of favor when people died from taking too much, or from taking it in combination with alcohol. But when intended as a lethal medication to hasten the death of someone suffering from a terminal disease, Seconal is the drug of choice.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It works very quickly and very gently,” Grube says. “People fall asleep with no complications. It's a very gentle passing.”\u003c/p>\n\u003cp>In 2009, Grube remembers the price of a lethal dose of Seconal -- 100 capsules -- was less than $200. Over the next six years, it shot up to $1,500, according to drug price databases Medi-Span and First Databank. Then Valeant bought Seconal last February and immediately doubled the price to $3,000.\u003c/p>\n\u003cp>Most drug companies justify such hikes by pointing to high research costs. But Grube says that’s not the case with Seconal. It’s been around for 80 years.\u003c/p>\n\u003cp>“It’s not a complicated thing to make, there’s no research being done on it, there’s no development,” he says. “That to me is unconscionable.”\u003c/p>\n\u003cp>Valeant bought several other drugs at the same time it bought Seconal, raising some of those prices as much as 500 percent. That sparked a \u003ca href=\"http://www.npr.org/sections/health-shots/2015/12/09/458976680/senate-questions-egregious-price-hikes-for-specialty-medicines\" target=\"_blank\">congressional investigation\u003c/a> into its pricing practices. (The CEO resigned Monday amid an accounting controversy).\u003c/p>\n\u003caside class=\"pullquote alignright\">'You are literally, at that point, taking the money from children.'\u003ccite>Elizabeth Wallner, stage 4 cancer patient\u003c/cite>\u003c/aside>\n\u003cp>“Valeant sets prices for drugs based on a number of factors,” the company said in a statement, including the cost of developing or acquiring the drug, the availability of generics and the benefits of the drug compared with costly alternative treatments. “When possible, we offer patient assistance programs to mitigate the effects of price adjustments and keep out-of-pocket costs affordable for patients.”\u003c/p>\n\u003cp>The most likely explanation for raising the price of Seconal is the lack of generics, says Mick Kolassa, founding partner of Medical Marketing Economics, a firm that advises drug companies on how to price and market their drugs.\u003c/p>\n\u003cp>Seconal went off patent in the early '90s. There were some generics for a while, but then demand shrank and manufacturers abandoned them.\u003c/p>\n\u003cp>“So that meant when the current company bought it, they didn't have any generic competition, simply because the market got so small that it left,” Kolassa said. “So in situations like that, a company can acquire it and raise the price.”\u003c/p>\n\u003cp>Kolassa says it’s also possible that the demand for even the brand-name drug is so low that it’s hard to recoup the costs of making and selling it.\u003c/p>\n\u003cp>“Here's a company that said, well, we can raise the price, keep it on the market and make some money with it,” he said. “Or we can walk away and the product goes away.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/254347186&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/254347186'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Whatever the explanation, what cancer patients like Elizabeth Wallner see is a drug company taking advantage. She has one word to describe the pharmaceutical executive who decided to double the price of Seconal: “Scumbag.”\u003c/p>\n\u003cp>Wallner was diagnosed with Stage 4 colon cancer five years ago. It spread to her liver and lungs. She always thought that if her suffering became too unbearable, she would consider ending her life. But she never thought about the price tag of the lethal drug.\u003c/p>\n\u003cp>“You're going to make money off my death,” she said.\u003c/p>\n\u003cp>She’s most worried about her son.\u003c/p>\n\u003cp>“You are literally, at that point, taking the money from children,” she said. “Everything I have, if I’m going to die tomorrow, everything I have will be left to my son who will be 20 years old and almost 100 percent on his own.”\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Under the California aid-in-dying law, it is optional for health insurance companies to cover the costs of the practice. Most private insurers plan to do so, according to the California Association of Health Plans. So does the state’s \u003ca href=\"http://www.usnews.com/news/articles/2016-03-21/in-california-government-to-pick-up-the-tab-for-death-with-dignity\" target=\"_blank\">Medicaid program\u003c/a>.\u003c/p>\n\u003cp>But for patients who aren’t covered, there is a cheaper alternative: a three-part drug cocktail that can be mixed by a compounding pharmacy for about $400.\u003c/p>\n\u003cp>Grube says the cocktail works just as well, but doctors usually don't prescribe it because of the hassle some patients have to go through to get it. Seconal, on the other hand, is a ready-made pill, routinely available at most retail drugstores.\u003c/p>\n\u003cp>He says advocacy groups like Compassion & Choices are working on campaigns to reduce drug costs and to \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/10/12/education-push-to-help-doctors-field-patients-assisted-death-requests/\" target=\"_blank\">educate doctors\u003c/a> and patients about the law.\u003c/p>\n\u003cp>“My dream is that any Californian who will choose aid in dying would have few burdens or barriers to jump through,” Grube said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Katie Orr contributed reporting from Sacramento. \u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/163375/pharmaceutical-companies-hiked-price-on-aid-in-dying-drug","authors":["3205"],"categories":["stateofhealth_13"],"tags":["stateofhealth_914","stateofhealth_2640","stateofhealth_2519","stateofhealth_754"],"featImg":"stateofhealth_163454","label":"stateofhealth"},"stateofhealth_137669":{"type":"posts","id":"stateofhealth_137669","meta":{"index":"posts_1591205157","site":"stateofhealth","id":"137669","score":null,"sort":[1452585706000]},"guestAuthors":[],"slug":"legislators-trying-again-to-make-drug-costs-transparent","title":"Legislators Trying Again to Make Drug Costs Transparent","publishDate":1452585706,"format":"standard","headTitle":"State of Health | KQED News","labelTerm":{"site":"stateofhealth"},"content":"\u003cp>With drug manufacturers charging $1,000 a pill for \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/05/21/covered-california-considers-capping-patients-drug-costs/\" target=\"_blank\">hepatitis C treatments\u003c/a> and raising the price of a longstanding \u003ca href=\"http://www.huffingtonpost.com/james-peron/why-one-hiv-drug-costs-5000-percent-more-overnight_b_8174724.html\" target=\"_blank\">HIV medication 5,000 percent\u003c/a>, state lawmakers hope to revive a bill that would demystify prescription drug costs.\u003c/p>\n\u003caside class=\"pullquote align right\">\"Sunlight on costs will help control costs.\"\u003ccite>Assemblyman David Chiu, D-San Francisco\u003c/cite>\u003c/aside>\n\u003cp>\u003ca href=\"https://legiscan.com/CA/sponsors/AB463/2015\" target=\"_blank\">Assembly Bill 463\u003c/a> would require pharmaceutical companies to report production and marketing costs associated with any drug treatment priced at $10,000 or more. The bill, called the Pharmaceutical Cost Transparency Act, was initially\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB463\" target=\"_blank\"> introduced last February\u003c/a>, but floundered in the Legislature. Now the authors are hoping the growing outcry in the last six months over drug prices will help garner new supporters.\u003c/p>\n\u003cp>“Discontent with drug prices has reached a real breaking point,” said Assemblyman David Chiu, D-San Francisco, author of the bill. “Skyrocketing drug prices are gouging consumers, are costing government billions of dollars, are hitting at the bottom lines of businesses. And this is significantly impacting our health care costs.”\u003c/p>\n\u003cp>Specifically, the bill would require drug makers to report:\u003c/p>\n\u003cul>\n\u003cli>Profits attributed to the drug\u003c/li>\n\u003cli>Costs associated with clinical drug trials, research and development, and manufacturing\u003c/li>\n\u003cli>Government grants that supported research\u003c/li>\n\u003cli>Marketing and advertising\u003c/li>\n\u003c/ul>\n\u003cp>“I think sunlight on costs will help control costs,” Chiu says. “The data that we do know of, suggests that many of these companies are spending billions of dollars marketing and advertising their drugs, and not as much as they suggest on research and development.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Drug makers oppose the bill. They say the time and money spent on the new reporting requirements would be better spent on developing new life saving drugs.\u003c/p>\n\u003cp>“It’s unclear how the bill will actually help patients in the long run,” says Priscilla VanderVeer, spokesperson for the Pharmaceutical Research and Manufacturers of America, a trade group for the industry. “Does it actually lead to lower prices? Once all this information is compiled, then what?”\u003c/p>\n\u003cp>Drug companies are also concerned that some of the information they would have to report is proprietary.\u003c/p>\n\u003cp>“For competitive purposes, the company doesn't want extreme specifics to fall into the hands of their competitors,” VanderVeer says.\u003c/p>\n\u003cp>For example, if companies disclose how much they are spending on a clinical trial, it could signal to a competitor their level of investment in a certain drug or disease, and the competitor might adjust their own practices.\u003c/p>\n\u003cp>Health insurance companies say they have to disclose proprietary information to regulators to justify hikes in premium rates, and they argue the protections for that information are adequate.\u003c/p>\n\u003cp>Health plans have been particularly interested in seeing AB 463 pass. Even though they can negotiate what they pay pharmaceutical companies for drugs to some extent, they're limited in how much of the cost they can pass on directly to consumers. \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB339\" target=\"_blank\">A new law\u003c/a> in California limits how much plans can charge patients out of pocket for specialty drugs to $250 per month, per prescription.\u003c/p>\n\u003cp>\"At the end of the day, we have to buy these drugs,\" says Charles Bacchi, president and CEO of the California Association of Health Plans.\u003c/p>\n\u003cp>Health insurers will have no choice but to raise premium rates for everybody in order to balance the costs, he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"When it comes to high priced specialty drugs, the elephant in the room is how much those drugs cost America,\" Bacchi says. \"The pharmaceutical companies want to try to sweep that under the rug, but you can't sweep an elephant under the rug.\"\u003c/p>\n\n","blocks":[],"excerpt":"The bill would require drug makers to disclose production and marketing costs of any drug treatment priced at $10,000 or more.","status":"publish","parent":0,"modified":1452620236,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":17,"wordCount":602},"headData":{"title":"Legislators Trying Again to Make Drug Costs Transparent | KQED","description":"The bill would require drug makers to disclose production and marketing costs of any drug treatment priced at $10,000 or more.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"Article","headline":"Legislators Trying Again to Make Drug Costs Transparent","datePublished":"2016-01-12T08:01:46.000Z","dateModified":"2016-01-12T17:37:16.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}},"disqusIdentifier":"137669 http://ww2.kqed.org/stateofhealth/?p=137669","disqusUrl":"https://ww2.kqed.org/stateofhealth/2016/01/12/legislators-trying-again-to-make-drug-costs-transparent/","disqusTitle":"Legislators Trying Again to Make Drug Costs Transparent","path":"/stateofhealth/137669/legislators-trying-again-to-make-drug-costs-transparent","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>With drug manufacturers charging $1,000 a pill for \u003ca href=\"http://ww2.kqed.org/stateofhealth/2015/05/21/covered-california-considers-capping-patients-drug-costs/\" target=\"_blank\">hepatitis C treatments\u003c/a> and raising the price of a longstanding \u003ca href=\"http://www.huffingtonpost.com/james-peron/why-one-hiv-drug-costs-5000-percent-more-overnight_b_8174724.html\" target=\"_blank\">HIV medication 5,000 percent\u003c/a>, state lawmakers hope to revive a bill that would demystify prescription drug costs.\u003c/p>\n\u003caside class=\"pullquote align right\">\"Sunlight on costs will help control costs.\"\u003ccite>Assemblyman David Chiu, D-San Francisco\u003c/cite>\u003c/aside>\n\u003cp>\u003ca href=\"https://legiscan.com/CA/sponsors/AB463/2015\" target=\"_blank\">Assembly Bill 463\u003c/a> would require pharmaceutical companies to report production and marketing costs associated with any drug treatment priced at $10,000 or more. The bill, called the Pharmaceutical Cost Transparency Act, was initially\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB463\" target=\"_blank\"> introduced last February\u003c/a>, but floundered in the Legislature. Now the authors are hoping the growing outcry in the last six months over drug prices will help garner new supporters.\u003c/p>\n\u003cp>“Discontent with drug prices has reached a real breaking point,” said Assemblyman David Chiu, D-San Francisco, author of the bill. “Skyrocketing drug prices are gouging consumers, are costing government billions of dollars, are hitting at the bottom lines of businesses. And this is significantly impacting our health care costs.”\u003c/p>\n\u003cp>Specifically, the bill would require drug makers to report:\u003c/p>\n\u003cul>\n\u003cli>Profits attributed to the drug\u003c/li>\n\u003cli>Costs associated with clinical drug trials, research and development, and manufacturing\u003c/li>\n\u003cli>Government grants that supported research\u003c/li>\n\u003cli>Marketing and advertising\u003c/li>\n\u003c/ul>\n\u003cp>“I think sunlight on costs will help control costs,” Chiu says. “The data that we do know of, suggests that many of these companies are spending billions of dollars marketing and advertising their drugs, and not as much as they suggest on research and development.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Drug makers oppose the bill. They say the time and money spent on the new reporting requirements would be better spent on developing new life saving drugs.\u003c/p>\n\u003cp>“It’s unclear how the bill will actually help patients in the long run,” says Priscilla VanderVeer, spokesperson for the Pharmaceutical Research and Manufacturers of America, a trade group for the industry. “Does it actually lead to lower prices? Once all this information is compiled, then what?”\u003c/p>\n\u003cp>Drug companies are also concerned that some of the information they would have to report is proprietary.\u003c/p>\n\u003cp>“For competitive purposes, the company doesn't want extreme specifics to fall into the hands of their competitors,” VanderVeer says.\u003c/p>\n\u003cp>For example, if companies disclose how much they are spending on a clinical trial, it could signal to a competitor their level of investment in a certain drug or disease, and the competitor might adjust their own practices.\u003c/p>\n\u003cp>Health insurance companies say they have to disclose proprietary information to regulators to justify hikes in premium rates, and they argue the protections for that information are adequate.\u003c/p>\n\u003cp>Health plans have been particularly interested in seeing AB 463 pass. Even though they can negotiate what they pay pharmaceutical companies for drugs to some extent, they're limited in how much of the cost they can pass on directly to consumers. \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB339\" target=\"_blank\">A new law\u003c/a> in California limits how much plans can charge patients out of pocket for specialty drugs to $250 per month, per prescription.\u003c/p>\n\u003cp>\"At the end of the day, we have to buy these drugs,\" says Charles Bacchi, president and CEO of the California Association of Health Plans.\u003c/p>\n\u003cp>Health insurers will have no choice but to raise premium rates for everybody in order to balance the costs, he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"When it comes to high priced specialty drugs, the elephant in the room is how much those drugs cost America,\" Bacchi says. \"The pharmaceutical companies want to try to sweep that under the rug, but you can't sweep an elephant under the rug.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/stateofhealth/137669/legislators-trying-again-to-make-drug-costs-transparent","authors":["3205"],"categories":["stateofhealth_14"],"tags":["stateofhealth_2640","stateofhealth_799","stateofhealth_2519"],"featImg":"stateofhealth_137693","label":"stateofhealth"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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You ask the questions. You decide what Bay Curious investigates. And you join us on the journey to find the answers.","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Bay-Curious-Podcast-Tile-703x703-1.jpg","imageAlt":"\"KQED Bay Curious","officialWebsiteLink":"/news/series/baycurious","meta":{"site":"news","source":"kqed","order":"4"},"link":"/podcasts/baycurious","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/bay-curious/id1172473406","npr":"https://www.npr.org/podcasts/500557090/bay-curious","rss":"https://ww2.kqed.org/news/category/bay-curious-podcast/feed/podcast","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93dzIua3FlZC5vcmcvbmV3cy9jYXRlZ29yeS9iYXktY3VyaW91cy1wb2RjYXN0L2ZlZWQvcG9kY2FzdA","stitcher":"https://www.stitcher.com/podcast/kqed/bay-curious","spotify":"https://open.spotify.com/show/6O76IdmhixfijmhTZLIJ8k"}},"bbc-world-service":{"id":"bbc-world-service","title":"BBC World Service","info":"The day's top stories from BBC News compiled twice daily in the week, once at weekends.","airtime":"MON-FRI 9pm-10pm, TUE-FRI 1am-2am","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/BBC-World-Service-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.bbc.co.uk/sounds/play/live:bbc_world_service","meta":{"site":"news","source":"BBC World Service"},"link":"/radio/program/bbc-world-service","subscribe":{"apple":"https://itunes.apple.com/us/podcast/global-news-podcast/id135067274?mt=2","tuneIn":"https://tunein.com/radio/BBC-World-Service-p455581/","rss":"https://podcasts.files.bbci.co.uk/p02nq0gn.rss"}},"code-switch-life-kit":{"id":"code-switch-life-kit","title":"Code Switch / Life Kit","info":"\u003cem>Code Switch\u003c/em>, which listeners will hear in the first part of the hour, has fearless and much-needed conversations about race. Hosted by journalists of color, the show tackles the subject of race head-on, exploring how it impacts every part of society — from politics and pop culture to history, sports and more.\u003cbr />\u003cbr />\u003cem>Life Kit\u003c/em>, which will be in the second part of the hour, guides you through spaces and feelings no one prepares you for — from finances to mental health, from workplace microaggressions to imposter syndrome, from relationships to parenting. The show features experts with real world experience and shares their knowledge. Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Code-Switch-Life-Kit-Podcast-Tile-360x360-1.jpg","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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