Nevada Bill Aims to Limit Insulin Costs
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A bill to force drug companies to reveal how they set insulin prices and to issue refunds if yearly price increases exceed inflation is expected to pass in both houses of Nevada's Democratic-controlled Legislature.
Republican Gov. Brian Sandoval told The Associated Press that he has not ruled out signing the bill.
The first vote on the bill is expected in early May. It seeks to limit how much employers and insurers pay for insulin. It's also hoped the bill caps diabetics' out-of-pockets costs near current levels -- typically $50 to $600 per month, depending on their insurance coverage.
If the bill is passed, Nevada would become the first U.S. state to to mandate detailed release of drug makers' proprietary information and to have a price control on prescription drugs through the refund plan, the AP reported.
The bill reflects public outrage over price hikes on common prescription medicines such as insulin and antibiotics, according to Steve Brozak, president of New Jersey-based WBB Securities investment banking firm, which specializes in health care.
However, he and other industry experts said drug companies are likely to launch lawsuits against the bill and that it may not achieve its intended effect.
"I don't think this will work in the way people think it will, but this could be the shot across the bow," Brozak told the AP.