Calif. law would require drugmakers to notify purchasers of price hikes

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The California State Senate on Wednesday approved a bill that would require drugmakers to provide 60 days notice to purchasers if the cost of a drug will be increased by more than 10 percent, according to the Los Angeles Times.

The bill, sponsored by Sen. Ed Hernández (D), would also require drug manufacturers to provide notice when a new drug will cost $10,000 or more per year, or during a course of treatment, according to the report.

Sen. Hernández cited examples of such instances, such as drugs for hepatitis, which can cost $84,000 for a course of treatment. He also noted the price of generic antibiotics increased by 2,000 percent in one year.

"Shining a light for the first time is having the greatest impact on our healthcare system," Sen. Hernández said, according to the report. "Members, this is not price control. This is transparency."

The bill was approved on a vote of 24 to 8, according to the report.

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