MAINE, USA — The new drug price transparency law was a key component of Maine Senate Democrats' prescription drug reform package that became law in 2019. The transparency rules were unanimously adopted by the Maine Health Data Organization (MHDO) last and the rules take effect Tuesday.
The aim of these laws is to better understand the pricing of prescription drugs so lawmakers can take additional steps to lower the cost and reform this industry.
Mainer's are trying to afford medication they need in order to work and make ends meet. Senate Majority Leader, Eloise Vitalli, D-Arrowsic said, "Mainer's deserve answers, and they deserve relief." With the MDHO passing these rules, information can be gathered about what is driving outrageous prescription drug prices and action to curb the cost can be taken.
One in four American's in the U.S. struggles to pay for their prescription medication. One in ten Americans can't afford to take their medication at all due to cost.
Four new laws will hold pharmaceutical companies and middlemen accountable while making prescription medication more affordable and more accessible.
Despite the fact that drug prices have been a focus for the past year and a half in Washington, D.C., drug manufacturers started day one of 2020 by raising prices on some drugs that could be a point of contention.
The MHDO will compile data collected and report trends in the cost of prescription drugs, manufacturer prices and increases, and the impact on insurance premiums. A manufacturer or wholesale distributor who violates the law commits a civil violation and can incur a fine of $30,000 and can be penalized for each day of the violation.
