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Drug Production Costs Transparency Analysis Report

Concerning an analysis of prescription drug manufacturer data on high-cost prescription drugs paid for by specified state departments to determine the components of the production process that drive the price of the prescription drugs.
2020 Regular Session
Health Care & Health Insurance
State Government
Bill Summary

The bill directs the department of health care policy and financing (state department), or a third party with whom the department contracts, to collect, analyze, and report prescription drug production cost data regarding the 20 highest-cost prescription drugs per course of therapy and the 20 highest-cost prescription drugs by volume that were purchased or paid for by the departments of corrections, human services, personnel, and health care policy and financing (departments) during the 2019-20 and future state fiscal years. Upon receipt of a list of the highest-cost prescription drugs purchased or paid for by the departments, the state department or its designated contractor, as applicable, is directed to request from the manufacturers of the drugs on the list information showing the basis for and components of the wholesale acquisition cost (WAC) of each drug on the list.

The state department or its designated contractor, as applicable, is to analyze the data received from drug manufacturers and report its findings regarding the basis for the WAC for each prescription drug on the list, specifying the percentage of the WAC that is attributable to each component driving the WAC. The state department is required to provide an annual prescription drug price transparency report by December 1, 2021, and each December 1 thereafter to specified legislative committees. The state department and its designated contractor, as applicable, are required to maintain the confidentiality of any proprietary information received from a drug manufacturer, and that information is exempt from the "Colorado Open Records Act".

The executive director of the state department is authorized to adopt rules as necessary to implement and administer the bill. A manufacturer that fails to report the required information is subject to a civil penalty of up to $10,000 per day.

(Note: This summary applies to this bill as introduced.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Sen. J. Ginal
Rep. D. Jackson, Rep. K. Mullica



The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details