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Drug companies move to block law requiring advance notice for price hikes

Sun, 10 Dec 2017 16:21:45 +0000

iStock/Thinkstock(NEW YORK) -- Pharmaceutical companies are suing to block a new law in California that requires them to give a 60-day notice before raising prices above a certain threshold.

Signed into law in October, the legislation comes after consumers grew outraged over a rise in costs for some prescriptions, including EpiPens for allergic reactions and Hepatitis C treatments.  

This prompted the Pharmaceutical Research and Manufacturers of America to file a lawsuit saying that California’s law illegally “attempts to dictate national health care policy,” according to a statement by the trade group. It said the law “singles out drug manufacturers” as the reason why drug costs rise, while there are “many other entities” that affect the prices.  

However, Sen. Ed Hernandez, D-Calif., who wrote the bill, said the lawsuit is “just another example” of big pharmaceutical companies “refusing to accept any responsibility for the skyrocketing costs of prescription drugs.”

“The idea that anyone other than drug companies is responsible for price increases is absurd,” he said. “I’m confident the law will be upheld.”

The law is set to take effect Jan. 1.

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