Vermont Becomes 1st State to Make Drug Companies Justify Price Hikes

Despite opposition from the pharmaceutical industry, Vermont late last week became the first state in the country to require drug makers to justify price hikes for medicines.

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Despite opposition from the pharmaceutical industry, Vermont late last week became the first state in the country to require drug makers to justify price hikes for medicines.

 
The law is part of a wave of state legislation that comes in response to growing concern over the rising cost of prescription drugs. Around the country, lawmakers have been introducing bills in hopes of forcing drug makers to either disclose costs or explain pricing. These demands reflect industry arguments that rising prices reflect rising R&D costs.
 
“This bill is about accountability,” Vermont Governor Peter Shumlin said in a statement.
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Caroline Cournoyer is GOVERNING's senior web editor.
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