California Attorney General Rob Bonta has led 21 attorneys general in filing an amicus brief in the case of Pharmaceutical Research & Manufacturers of America v. Stolfi, advocating for laws that enhance drug price transparency. The brief, submitted to the Ninth Circuit Court of Appeals, supports Oregon's House Bill 4005, which mandates pharmaceutical manufacturers to disclose specific information about new prescription drugs and historical pricing data for existing medications. This bill is comparable to California's Senate Bill 17 enacted in 2017.
"As prescription drug prices continue to escalate across our country, the need for state-level action to protect residents from predatory pricing practices has never been more urgent," said Attorney General Bonta. "That’s why today I’m leading a multi-state coalition of attorneys general nationwide to support Oregon’s drug price transparency law. High prescription drug prices threaten peoples’ access to care and can result in worsening medical conditions, declining health outcomes, and even death. Together, we can create a healthcare system that prioritizes the well-being of our people over the profits of pharmaceutical companies."
Oregon’s House Bill 4005, passed in 2018, seeks to increase transparency in drug pricing, hold pharmaceutical companies accountable for price hikes, and help control rising prescription drug costs for Oregon residents. The Pharmaceutical Research and Manufacturers Association (PhRMA), representing major U.S. drug manufacturers, filed a lawsuit challenging the constitutionality of House Bill 4005. Although the federal district court ruled partially in favor of PhRMA, Oregon has appealed to the Ninth Circuit.
California's Senate Bill 17 also aims to protect consumers from significant increases in pharmaceutical drug prices by requiring manufacturers to report specified information when there is an increase in a drug’s list price. Data obtained under SB 17 allows the California Department of Managed Health Care to evaluate the impact of prescription drug costs on health plan premiums. Both California state agencies and the Department of Justice have used this law for enforcement purposes.
A Gallup-West Health National Healthcare Study from 2019 reported that over 13 percent of American adults—approximately 34 million people—knew at least one person who died within five years due to being unable to afford necessary medical treatment. The coalition argues that state laws like Oregon’s serve critical state interests as recent dramatic increases in drug pricing harm states and their residents.
The amicus brief underscores various measures adopted by bipartisan states to hold pharmaceutical manufacturers accountable through laws promoting drug price transparency. It emphasizes the importance of data collection laws that provide greater understanding of drug spending and guide policy solutions addressing high drug costs.
Attorney General Bonta was joined by attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania Vermont Washington and the District of Columbia.
A copy of the amicus brief can be found here.