Nevada passed a law on Thursday that aims to make how medical drugs are priced more transparent. Pharmaceutical companies are now required to publicly disclose the cost of producing and marketing diabetes drugs in addition to the rebates they offer, and pharmacy benefit managers (PBMs) must disclose the rebates they receive for those drugs and how much of the rebates they retain.
Showing the inner workings of drug pricing will be a crucial step towards creating future legislation that can effectively target reducing drug prices. Bond told me that other state legislatures controlled by Democrats, like California’s and Oregon’s, are taking notice of the Nevada bill and hope to replicate it.
“It’s a big breakthrough just to be able to get some transparency. It brings accountability. Pharma has been living in this bubble. This is a first step in getting to the cost levers,” Bond said.