ST. PAUL, Minn. – Today, the Minnesota House considered a combined Health and Human Services and Transportation Omnibus Finance Bill. During floor debate, state Rep. John Lesch (DFL – St. Paul) successfully amended the bill to prohibit price gouging of prescription drugs in Minnesota.
“Many Minnesotans have to pay prices for prescription medications that are downright obscene. It’s wrong that these folks are put in a position where they feel helpless as Big Pharma rakes in record profits from this unconscionable activity,” Rep. Lesch said. “These are drugs people need to live healthy lives and in some cases, are needed just to stay alive. I’m pleased we were able to take this step to protect the health and wellbeing of Minnesotans.”
Under the amendment, price gouging for essential off-patent or generic drugs would be prohibited. The legislation defines price gouging as “an increase in the price of a prescription drug that is excessive and not justified by the cost of producing the drug or the cost of appropriate expansion of access to the drug to promote public health.”
“In some cases, people are making life or death choices to forgo needed medications, like insulin, due to the outrageous cost,” Rep. Lesch said. “And let’s not forget the controversy surrounding the outrageous price of the lifesaving EpiPen. It’s unacceptable that Big Pharma is able to carry so much control over people’s lives, and I thank my colleagues in the House for supporting our key value of fairness today.”
It allows the Board of Pharmacy, the Commissioner of Health or a health insurance plan to notify the Attorney General under certain criteria, such as when a price increases by 50 percent or more. The Attorney General could then investigate this, starting with a request of information from the drug manufacturer including records and information about the production of the medication, including itemized costs and circumstances that caused the price increase.
A private right of action is also included in the amendment for individuals who have been victims of price gouging.