Gov. Hochul Stands Up to Big Drug Companies, Signs Law Forcing Disclosure of Rx Price Hikes
Other States with Similar Price Transparency Laws Have Reported Fewer, Lower Prescription Drug Price Increases
ALBANY, N.Y. – AARP New York State Director Beth Finkel issued the following statement today after Governor Kathy Hochul signed a bill to fight skyrocketing prescription drug prices by requiring drug makers to disclose and justify significant price increases (S599A-Salazar/A1707A-D. Rosenthal):
“Governor Hochul has taken a significant step toward fighting ever-increasing prescription drug prices by standing up to the big drug companies – and standing with New Yorkers.
“AARP New York applauds the Governor’s leadership in signing this new law requiring drug makers to disclose and justify significant price increases. That can only help millions of New Yorkers who rely on life-sustaining and in some cases life-saving medication but who sometimes must skip or ration prescription drugs because of their high prices.
“Cost is the primary reason for American voters 50 and older deciding not to fill a prescription.
“This new law follows through on the commitment the Governor has shown on this issue, notably the even farther-reaching provisions she proposed as part of her executive budget.
“New Yorkers and their fellow Americans pay three times what residents of other countries pay for the same prescription drugs. Skyrocketing drug prices drive up New Yorkers’ out-of-pocket costs, insurance premiums, and the bill for taxpayer-funded programs like Medicaid and the Elderly Pharmaceutical Insurance Program that buy prescription drugs in huge quantities.
“Other states with similar price transparency laws on the books have seen fewer and lower price hikes. Vermont reported an almost 80% decline in the number of price increases of 15% or more for its taxpayer-funded Medicaid program between 2016 and 2020. Oregon’s transparency law resulted in 70% fewer reports of price increases over its threshold of 10% or higher for drugs priced at $100 or more in the first year, from 2019 to 2020.
“AARP New York is pleased that New Yorkers will hopefully see similar, and long-overdue, benefits. We also thank the bill sponsors, Senator Julia Salazar and former Assembly Member Dan Rosenthal. We will continue fighting for more reforms such as importing much lower Canadian prescription drug prices, which would significantly lower costs for all New Yorkers.”
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AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/españo or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.