CLSA Wire

Major Reporting Bill Opposed by CLSA Now before California’s Assembly

June 19, 2016

State legislation we have previously reported on, Senate Bill (SB) 1010, will be heard, as of the time of this writing, in California’s Assembly Health Committee on Tuesday, June 21. Significant amendments were made to the bill prior to its reaching the Senate floor, though the bill remains unacceptable for the life sciences sector and is one of CLSA’s top legislative targets of the year.

The bill still would require, among other things, a manufacturer to provide a 60-day notice to all payers, pharmacy benefit managers (PBM), and government purchasers in California, as well as the state legislature, if the price of a brand drug increases more than 10 percent in a 12-month period. At 30 days, the manufacturer would be required to submit a justification of the increase.

On June 1, the bill made it out of the Senate on a 25-10 vote largely along party lines – all but two Republican Senators voted no, while three abstained. Senator Jerry Hill (D-San Mateo) was the only Democrat to vote no.

SB 1010 Digital Ad Example

CLSA continues to lead the campaign against the bill. In addition to direct advocacy efforts in Sacramento, our efforts include “earned media” with the placement of a number of op-eds and letters to the editor in major newspapers in the state ahead of the Assembly Health Committee hearing. CLSA has also initiated a digital media campaign, with a series of Facebook, Twitter and other on-line ads focused in Sacramento and key legislative districts across the state.

Additionally, several groups representing patients’ and various other public interests, including the California NAACP and Chronic Care Coalition, have voiced their concerns with the bill, particularly on the topic of advance notices of price increases leading to shortages for critical medicines and disruptions in patient access. CLSA continues to reach out to the patient community to ensure they are aware of the potential dangers to access that this bill poses.

More information on the CLSA digital media campaign, recent CLSA-related articles on SB 1010, and information related to concerns from the patient community can be found on our campaign website: https://protectaccessandinnovation.org/.

As of the time of this writing, we are aware of no proposed amendments to the bill, and certainty as to the outcome from the Assembly Health Committee hearing remain fluid. Stay tuned for further updates on this critical legislation. Questions? Please contact Brett Johnson, CLSA’s Director of State and Local Government Policy (Bjohnson@califesciences.org).