Mass. bill would force drugmakers to defend prices

http://www.bostonherald.com/business/healthcare/2015/08/mass_bill_would_force_drugmakers_to_defend_prices

Mass. bill would force drugmakers to defend prices
Tuesday, August 11, 2015
Marie Szaniszlo

The pharmaceutical and insurance industries are going head to head over a bill that would make Massachusetts the first state to limit certain drug prices.

The proposed legislation would force drugmakers to defend their prices by revealing how much they spend on research, development and marketing, and would permit the state Health Policy Commission to cap the prices of some of the most expensive drugs.

“It would be an important step in increasing transparency,” said Eric Linzer, senior vice president of public affairs and operations at the Massachusetts Association of Health Plans. “It would provide an opportunity for policymakers and employer consumers to look at significant increases in drug prices at a time when the state is working to contain costs.”

The bill comes amid a backlash against drug prices, which can reach into the hundreds of thousands of dollars annually. A year’s supply of Boston-based Vertex Pharmaceuticals’ new cystic fibrosis drug, for example, costs $259,000.