Fight Skyrocketing Rx Prices by Signing Transparency Bill, 42 Groups Urge Governor

Transparency Laws in Other States Have Resulted in Fewer, Lower Rx Price Hikes; AARP NY Also Delivers 3,200+ Member Letters to Governor

ALBANY, N.Y. – Forty-two organizations including advocates for the aging, communities of color, consumers, healthcare, labor and more are urging Governor Kathy Hochul to sign into law a bill that would fight skyrocketing prescription drug prices by requiring drug makers to disclose and justify significant price increases.

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Similar price transparency laws in other states have led to fewer and lower price hikes.

The groups sent a letter (reprinted in full below) to the Governor, and AARP New York delivered over 3,200 members’ letters to her office today urging her to sign the bill.

Governor Hochul proposed even farther-reaching prescription drug transparency provisions as part of her executive budget this year.

The pharmaceutical industry has opposed similar legislation across the country and is now opposing the New York bill (S599A/A1707A, sponsored by Senator Julia Salazar and former Assembly Member Dan Rosenthal) – which passed the State Assembly unanimously and by a bi-partisan 52-10 vote in the State Senate.

List prices for the most popular Medicare Part D drugs have more than tripled since entering the market in recent years, as an AARP report shows. Cost is the primary reason for American voters 50 and older deciding not to fill a prescription, according to a recent AARP national survey.

“We pay three times as much for many of the same prescription drugs as people in other countries,” said AARP New York State Director Beth Finkel. “Skyrocketing drug prices drive up New Yorkers’ out-of-pocket costs, insurance premiums, and the bill for taxpayer-funded programs like Medicaid and the Elderly Pharmaceutical Insurance Program that buy prescription drugs in huge quantities.

“This is the Governor’s chance to take another important step in attacking this problem and build on her strong record of addressing the high cost of prescription drugs. Transparency legislation has helped moderate price increases in other states. We strongly urge Governor Hochul – who proposed strong transparency provisions herself that were unfortunately not included in the final budget negotiated with state legislators - to sign this bill to give New Yorkers the same benefits.”

California, Texas, New Jersey, Connecticut and Vermont are among 19 states that have already enacted transparency laws. Vermont reported an almost 80% decline in the number of price increases of 15% or more for its taxpayer-funded Medicaid program between 2016 and 2020. Oregon’s transparency law resulted in 70% fewer reports of price increases over its threshold of 10% or higher for drugs priced at $100 or more in the first year, from 2019 to 2020.

“Latinos of all ages rely on life-saving prescriptions to carry on their daily lives,” said Frankie Miranda, President and CEO of Hispanic Federation. “However, prescription prices will often increase without notice, leading many to choose between buying their medication or other daily essentials. That shouldn’t be the case. S.599-A/A.1707-A would change this by ensuring that everyone knows exactly when costs will change and by how much so people can better prepare financially. I thank the AARP for championing this bill, and urge the Governor to sign this bill immediately.”

Wayne Ho, President and CEO of the Chinese-American Planning Council (CPC), said: “CPC works with Asian American and immigrant New Yorkers to help them access high quality, culturally responsive healthcare, and nearly half of our community members struggle to afford the healthcare and medication they need. As we fight for universal healthcare and a more affordable, accessible healthcare system, S599-A/A1707-A will help New Yorkers and the social services agencies that support them plan for consistent access to lifesaving medication. We urge the Governor to sign this bill into law.”