Vote Smart's Synopsis:

Vote to pass a bill that prohibits a wholesale distributor from increasing a price of an essential off-patent or generic drug under certain circumstances.

Highlights:

• Specifies that distributors are still allowed to raise the price of drugs if it is directly attributable to increases in costs for the drug imposed by the manufacturer on the distributor (Sec. 1).

• Specifies that information provided to the Attorney General under the act is classified as confidential commercial information unless confidentiality is waived by the manufacturer or distributor (Sec. 1).

• Authorizes the Maryland Medical Assistance Program to notify the Attorney General if the price increase (Sec. 1):

• Results in a 50% or more increase in wholesale acquisition cost of of the drug;

• Results in a single dose costing an individual more than $80;

• Results in a 30 day course of treatment costing more than $80 at the wholesale cost or;

• Causes the drug to be distributed in quantities that do not correspond to a 30 day supply.

• Requires the manufacturers of essential off-patent or generic drugs to submit a statement to the Attorney General upon his or her request that itemizes the materials and costs during drug production and identifies the circumstances and timing of the manufacturer’s expansion of access to the drug in question (Sec. 1).

• Specifies that the Attorney General may require a manufacturer or wholesale distributor to produce any documents or records relevant to a determination of whether a violation of law has occurred (Sec. 1).

• Establishes a penalty of $10,000 for each violation of this act (Sec. 1).

• Requires a manufacturer that has engaged in price gouging to make the price-gouged drug available to all participants in any state health plan or state health program for one year at the price prior to the manufacturer’s violation of this act (Sec. 1).  

Full Bill Text