Nessel, 20 other AGs defend Oregon drug pricing law

LANSING, Mich. (WLNS)– Michigan Attorney General Dana Nessel has joined 20 other AGs in an amicus brief, supporting an Oregon law that requires drug manufacturers to be transparent about pricing.

The amicus brief defends Oregon’s House Bill 4005 , passed into state law in 2018, which requires pharmaceutical manufacturers to report certain information about new prescription drugs, as well as historical information about the pricing of existing medications.

The amicus brief reports that under HB 4005, manufacturers have to report certain information about drugs when there is an increase in the drug’s Wholesale Acquisition Cost. They must report the following:

• The net increase in drug cost
• The factors contributing to the increase
• Direct costs incurred by the manufacturer
• Sales revenue and profits from the drug
• The 10 highest prices paid by other countries for the drug in the preceding calendar year

Since that time, the Pharmaceutical Research and Manufacturers Association (PhRMA), which represents some of the nation’s largest drug manufacturers, has filed a lawsuit in federal district court in Oregon, challenging the constitutionality of House Bill 4005.

The district court ruled, in part, in favor of PhRMA. The state of Oregon then appealed to the federal Ninth Circuit Court.

Soaring drug prices have become a public health and accessibility issue in recent years, advocates and researchers say.

A Gallup-West Health National Healthcare Study from 2019 indicates that more than 13% of U.S. adults–about 34 million people–said they know at least one friend or family member who had died in the last five years because they couldn’t pay for the medical treatment that they needed.

Nessel and the other attorneys general are now filing the amicus brief in Pharmaceutical Res. & Manufacturers of Am. v. Stolfi , defending Oregon HB 4005.

“[Our states] share a substantial interest in protecting the health and well-being of our residents and protecting access to affordable prescription drugs,” the AGs said in the amicus brief. “Without such access, residents’ medical conditions worsen, health outcomes decline and even death can occur.”

Sixteen states have adopted price transparency laws similar to Oregon HB 4005, the AGs said in the brief.

The other 20 attorneys general represent the District of Columbia and 19 states: California, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Vermont and Washington.

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