Maryland News

Maryland Officials Tout New Generic Drug Price-Gouging Law

October 31, 2017 / 9:55 PM EDT / CBS Baltimore

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SILVER SPRING, Md. (AP) — Following Maryland's recent efforts as the first state to enact a law that protects consumers from generic prescription drug price-gouging, local leaders and health care advocates on Tuesday highlighted the benefits of the legislation and urged Marylanders to share their personal stories about drug affordability.

The law went into effect Oct. 1 and restricts manufacturers of generic and off-patent prescription drugs from price gouging, or the "excessive and not justified" increase in the cost of a drug, according to a state analysis.

In July, the Association for Accessible Medicines, the trade association that represents America's manufacturers of generic and biosimilar medicines, filed a lawsuit against Maryland Attorney General Brian Frosh and Dennis Schrader, secretary of the Maryland Department of Health, charging that the law was unconstitutional. The association said in July that the law was only protecting high-priced brand name drug companies and punishing lower cost generic alternatives.

In September, a judge rejected portions of the association's argument and allowed the law to take effect. The association in a statement has said it plans to appeal.

"As a caregiver, prescription drugs are a big part of my life," said Prince George's County Executive Rushern Baker in a press release. Baker on Tuesday explained how the law has personally affected him and his family. His wife was diagnosed with early onset dementia and the cost of her medication had shot up from $100 during his earlier pharmacy visits to $300 in recent visits.

"You think about the fact that I have some of the best insurance as county executive. . I have resources, but what happens to somebody that comes in and can't afford to pay $300?" Baker said.

Generic medications account for 88 percent of drugs dispensed nationally, and 22 percent of generics studied by the Government Accountability Office experienced an "extraordinary price increase" of 100 percent or greater between 2010 and 2015, according to the office of the Maryland Attorney General.

"I take care of patients, not laws," Dr. Stephen Rockower, past president of MedChi said Tuesday. "My job is to make sure that patients get better, which means patients taking their medicine, and I can't do my job when they can't afford their medicine."

EpiPens and Naloxone are medications that officials have raised concerns about recently — citing prices that rose sharply from October 2013 to April 2014. Prices of EpiPens had a 508 percent increase in price. Naloxone, a medication used to treat opioid overdose — an especially important medication amid the nation's opioid crisis — increased in price by 553 percent, according to the office of the Maryland Attorney General.

"It's outrageous that companies can jack up prices like this," Maryland Citizens' Health Initiative President Vincent DeMarco told the University of Maryland's Capital News Service. "This law is a life-saver and we're confident that the attorney general will continue to succeed in court with this legislation."

Maryland joined 44 other states on Tuesday in an antitrust investigation of the generic drug industry. They asked a federal court for permission to file a new complaint to increase the number of generic drug manufacturer defendants from six to 16, and drugs at issue from two to 15.

"We have to go after it," said Maryland Attorney General Brian Frosh told Capital News Service. "We'll see the drug companies collapse and take it to trial."

Supporters of the legislation urged consumers on Tuesday to submit their stories to www.healthcareforall.com/hearmystory, a new webpage created for the public to share how escalating drug prices have hurt them or their families.

"As legislators, one of the ways we were able to fight was to hear the stories of individuals and repeat them in court by talking to people who could not afford the medicine that they needed," said state Delegate Ariana Kelly (D-Montgomery). "We need your help to make sure that the legislation works."

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