§ 62J.842 — Excessive Price Increases Prohibited
Plain-Language Summary
Prohibits drug manufacturers from making excessive price increases on prescription drugs.
62J.842 EXCESSIVE PRICE INCREASES PROHIBITED.
§
Subdivision 1.Prohibition.
No manufacturer shall impose, or cause to be imposed, an excessive price increase, whether directly or through a wholesale distributor, pharmacy, or similar intermediary, on the sale of any generic or off-patent drug sold, dispensed, or delivered to any consumer in the state. §
Subd. 2.Excessive price increase.
A price increase is excessive for purposes of this section when:
(1) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds:
(i) 15 percent of the wholesale acquisition cost over the immediately preceding calendar year; or
(ii) 40 percent of the wholesale acquisition cost over the immediately preceding three calendar years; and
(2) the price increase, adjusted for inflation utilizing the Consumer Price Index, exceeds $30 for:
(i) a 30-day supply of the drug; or
(ii) a course of treatment lasting less than 30 days. §
Subd. 3.Exemption.
It is not a violation of this section for a wholesale distributor or pharmacy to increase the price of a generic or off-patent drug if the price increase is directly attributable to additional costs for the drug imposed on the wholesale distributor or pharmacy by the manufacturer of the drug.
History:
History: History:
2023 c 57 art 2 s 23