California’s Drug Transparency Law: Navigating The Boundaries Of State Authority On Drug Pricing | Zendy

Katherine L. Gudiksen | Zendy; Timothy A. Brown | Zendy; Christopher Whaley | Zendy; Jaime S. King | Zendy

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California’s Drug Transparency Law: Navigating The Boundaries Of State Authority On Drug Pricing

Author(s) -

Katherine L. Gudiksen,

Timothy A. Brown,

Christopher Whaley,

Jaime S. King

Publication year - 2018

Publication title -

health affairs

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 3.837

H-Index - 178

eISSN - 2694-233X

pISSN - 0278-2715

DOI - 10.1377/hlthaff.2018.0424

Subject(s) - transparency (behavior) , negotiation , drug pricing , state (computer science) , incentive , drug prices , politics , law , business , law and economics , drug , economics , public economics , political science , actuarial science , pharmacology , medicine , market economy , computer science , algorithm

The California drug transparency bill (SB-17), signed into law in October 2017, seeks to promote transparency in pharmaceutical pricing, enhance understanding about pharmaceutical pricing trends, and assist in managing pharmaceutical costs. This article examines the legal and regulatory aspects of SB-17, explores legal challenges to the law, compares it to other state efforts to address rising drug prices, and discusses how California can maximize the impact of SB-17 by coupling the law with other incentives. While SB-17 might not significantly reduce drug prices, the new law represents a meaningful step for one state seeking to negotiate the political and legal boundaries of state action to rein in drug prices.

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