Official Text and Analysis.

Requires issuers and drug manufacturers to report certain prescription drug pricing data to a data organization contracted by the Health Care Authority (HCA).

Larifies that the Office of the Insurance Commissioner (OIC) has the authority to examine or audit a pharmacy benefit manager's (PBM) financial records for the purposes of ensuring the information submitted to the OIC is accurate. Requires the OIC to analyze the data PBMs submit, and compile the information into a report, which must be published by December 1 of each year. Requires the OIC to keep all data submitted by PBMs confidential and exempts the data from public disclosure. Prohibits a PBM from causing or knowingly permitting the use of an untrue, deceptive, or misleading advertisement, promotion, solicitation, representation, proposal, or offer. Exempts health plans covered by the Employee Retirement Income Security Act from the provisions establishing a fiduciary duty to patients and beneficiaries on PBMs. Exempts health maintenance organizations from the definition of PBMs.

Provides that information submitted by manufacturers is not subject to public disclosure. (2) Provides generic drug manufacturers flexibility on the timing for submission of pricing data before raising the price of a covered drug. (3) Adds a requirement for HCA to develop strategies with California and Oregon to reduce prescription drug costs and increase price transparency. (4) Adds a requirement for manufacturers to provide notice of new drug applications filed with the FDA.

Requires manufacturers to provide information to patients and providers concerning financial assistance programs offered by the manufacturer.

Clarifies that the price increases described in the definition of covered drug only apply to price increases that take effect prospectively, after the effective date of the bill. (2) Removes the requirement that manufacturers provide advance notice of price increases to purchasers and requires that advance notice be provided to HCA. Removes the definition of purchaser. (3) Adds language providing that the data submitted by manufacturers is not subject to public disclosure and is considered a trade secret. (4) Adds confidentiality protections for data submitted by manufacturers, and data related to individual prescription drugs, individual classes of prescription drugs, or discount amounts paid in connection with individual prescription drugs. (5) Provides generic drug manufacturers flexibility on the timing for submission of pricing data before raising the price of a covered drug. (6) Adds a requirement for HCA to develop strategies with California and Oregon to reduce prescription drug costs and increase price transparency. (7) Adds a requirement for manufacturers to provide notice of new drug applications filed with the FDA.