The Connecticut state Senate unanimously passed a bill to increase disclosure and reporting requirements for drug companies, PBMs, insurance companies and insurers. Connecticut’s House of Representatives unanimously passed the bill last week. If signed by Connecticut Governor Dannel Malloy, the legislation would take effect Jan. 1, 2020.
The bill, H.B. 5384, would establish an Office of Health Strategy (OHS) and require drug companies to justify to the office any drug price increases of more than 20% in one year or 50% over three years.
When submitting yearly rate requests, insurance companies would be required to report the 25 highest costing drugs on their plans, the 25 most prescribed drugs and the premium growth rate of prescription drugs.
PBMs would need to report how much income they receive from rebates and how much of that income they retain -- data which will be compiled and released publicly.
The state would also collect and make public information on whether insurers offset premiums with rebates.
Headed by an appointee of the state’s governor, the OHS would direct and oversee an all-payers claims database program, convene meetings with state government and external stakeholders to discuss health care issues and develop and enact “a comprehensive and cohesive healthcare vision for the state.”
Malloy’s office did not respond to an inquiry on whether he plans to sign the bill into law.