Transparency in nonprofit hospital drug pricing formulas and review of excessive nonprofit hospital drug pricing
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill aims to increase transparency in how nonprofit hospitals determine their drug prices in Massachusetts. It requires nonprofit hospitals to disclose detailed information about their drug pricing formulas and methodologies to the state’s health policy commission. The commission can then review this information to determine if the hospital’s drug pricing is unreasonable or excessive, potentially leading to further investigation and corrective action by the Attorney General.
Key provisions
- Requires nonprofit hospitals to submit annual Drug Chargemaster Pricing Methodology Reports detailing their drug pricing formulas.
- Requires hospitals to submit a supplemental schedule listing drug prices and related data annually.
- Establishes a process for the health policy commission to review hospital drug pricing and determine if it’s unreasonable or excessive.
- Allows the Attorney General to investigate hospital pricing practices if the commission finds them unreasonable.
- Defines key terms related to drug pricing, such as ‘Average Sales Price’ and ‘Chargemaster’.
- Specifies that hospitals cannot disclose proprietary cost information or trade secrets.
- Provides a mechanism for the center for health information and analysis to refer hospitals to the commission for review.
- Outlines penalties for hospitals that fail to comply with reporting requirements.
Who is affected
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Michael F. Rush
Cosponsor
Michael F. Rush
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