Bill Caption

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 2536 would create reporting requirements for pharmaceutical drug producers, managers, and insurers. Under the bill, drug manufacturers would be required to report data on the wholesale cost of drugs each year to the executive commissioner of the Health and Human Services Commission (HHSC). This would also include data regarding the entities sales and drug supply, and any changes in the price of a prescription drug. These requirements would apply only to a drug with a wholesale acquisition cost of at least $100 for a 30-day supply before the effective date of an increase described by this subsection. Not later than the 30th day after the effective date of an increase of 40 percent or more over the preceding five calendar years, or 10 percent or more in the preceding 12 months, in the wholesale acquisition cost of a drug to which the bill applies, a pharmaceutical drug manufacturer shall submit a report to HHSC.

The bill would also require Pharmacy Benefit Managers and Health Benefit Plan Issuers to submit reports to HHSC, and require HHSC to publish those reports online. 

Vote Recommendation Notes

The disclosure requirements contemplated by this legislation are inconsistent with the principles of limited government and free markets. A better way for government to help reduce the price of prescription drugs would be to lower regulatory compliance costs instead of adding new regulatory compliance requirements. For these reasons we oppose HB 2536.