An Act To Promote Prescription Drug Price Transparency
Maine Legislature, Session 128, LD 1406
Committee: Health and Human Services
Sponsors: VITELLI, FOLEY, CARPENTER, JACKSON, KEIM, WHITTEMORE, MELARAGNO, MOONEN, PRESCOTT, VACHON
Amends: 22 MRSA §2698

Legislative Document
No. 1406
S.P. 484
In Senate, April 11, 2017
An Act To Promote Prescription Drug Price Transparency
Reference to the Committee on Health and Human Services suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator VITELLI of Sagadahoc.
Cosponsored by Representative FOLEY of Wells and
Senators: CARPENTER of Aroostook, JACKSON of Aroostook, KEIM of Oxford, 
WHITTEMORE of Somerset, Representatives: MELARAGNO of Auburn, MOONEN of 
Portland, PRESCOTT of Waterboro, VACHON of Scarborough.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  22 MRSA §2698, as enacted by PL 1999, c. 786, Pt. A, §3, is repealed and 
the following enacted in its place: 
§2698.  Investigation by Attorney General 
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Course of treatment" means the prescribed regimen of health care treatment for 
the usual duration of treatment if treatment duration is typically limited, as approved 
for labeling by the United States Department of Health and Human Services, Food 
and Drug Administration; 
B.  "Qualifying prescription drug" or "drug" means a prescription drug that a 
manufacturer has made available in the State and that has created a substantial public 
interest in understanding the development of the drug's pricing because one or more 
of the following has occurred: 
(1)  The wholesale acquisition cost is $2,500 or more annually or for a course of 
treatment; 
(2)  The wholesale acquisition cost of the drug has increased by 50% or more 
over the previous 5 years; or 
(3)  The wholesale acquisition cost of the drug has increased by 15% or more 
over the previous 12 months. 
C.  "Wholesale acquisition cost" means the list price of a manufacturer of a 
prescription drug to a wholesaler or direct purchaser in the United States, not 
including prompt pay or other discounts, rebates or reductions in price, as reported in 
wholesale price guides or other publications of pharmaceutical pricing data or as 
estimated by the Maine Health Data Organization using the all-payer claims data and 
the ingredient cost and list price and dispensing fee information that is submitted to 
the Maine Health Data Organization. 
2.  Substantial public interest.  The Attorney General shall identify annually 
qualifying prescription drugs. 
3.  Compilation of list; justification.  The Attorney General shall compile a list of 
drugs identified pursuant to subsection 2 and shall list the drugs' percentage of wholesale 
acquisition cost increase, if any, and make the list available to the public on the publicly 
accessible website of the Attorney General.  With regard to each drug included on the list, 
the Attorney General shall require the manufacturer of the drug to provide justification of 
the increase in wholesale acquisition cost, if any, and shall specify the format and content 
of the reporting, as determined by the Attorney General to be understandable and 
appropriate. 
4.  Required information.  The Attorney General shall require the manufacturer of 
each drug identified pursuant to subsection 2 to provide to the Attorney General, in such 
form and format and on a schedule determined by the Attorney General, the following 
information: 
A.  Total cost of production and total cost per dose of the drug; 
B.  Research and development costs of the drug, including those costs paid with 
public funds, those costs reported as after-tax costs and those costs paid by 3rd 
parties; 
C.  Marketing and advertising costs of the drug, including those costs directed to 
consumers, those costs directed to prescribers and the total of those costs directed to 
consumers and prescribers in the State; 
D.  The retail prices of the drug charged to purchasers outside the United States in 
countries that are members of the Organisation of Economic Co-operation and 
Development or successor organization; 
E.  The retail prices of the drug typically charged to purchasers in the State, including 
but not limited to pharmacies, pharmacy chains, pharmacy wholesalers and other 
direct purchasers; and 
F.  True net typical prices charged to pharmacy benefits managers for distribution in 
this State, net of any rebate or other payments from the manufacturer to the pharmacy 
benefits manager and from the pharmacy benefits manager to the manufacturer. 
5.  Report to the Speaker of the House of Representatives and the President of 
the Senate.  By December 1st each year, the Attorney General shall provide a written 
report to the Speaker of the House of Representatives and the President of the Senate that 
provides information provided by prescription drug manufacturers pursuant to 
subsections 3 and 4 and shall post that information on the publicly accessible website of 
the Attorney General. 
6.  Investigation; enforcement.  The Attorney General shall investigate suspected 
cases of violations of this section and may take action to enforce this section. 
7.  Required attendance and testimony.  The Attorney General may require, by 
summons, the attendance and testimony of witnesses and the production of books and 
papers before the Attorney General related to any matter under investigation pursuant to 
subsection 6.  The summons must be served in the same manner as summonses for 
witnesses in criminal cases, and all provisions of law related to criminal cases apply to 
summonses issued under this section so far as they are applicable.  All investigations or 
hearings under this section to which witnesses are summoned or called upon to testify or 
to produce books, records or correspondence are public or private at the choice of the 
person summoned.  The expense of the investigation must be paid from the appropriation 
provided in Title 5, section 203. 
8.  Order of the court.  A Justice of the Superior Court may by order, upon 
application of the Attorney General, compel the attendance of witnesses, the production 
of books and papers, including correspondence, and the giving of testimony before the 
Attorney General in the same manner and to the same extent as before the Superior Court.  
Any failure to obey such an order may be punishable by that court as contempt. 
SUMMARY 
This bill amends the law governing profiteering in prescription drugs.  The bill 
requires more disclosure of drug production, research and development costs, marketing 
and advertising costs and actual costs paid upon purchase.  The bill allows investigations 
by the Attorney General of violations of these provisions.  The bill adds a required 
written report from the Attorney General each year.