Advocates hope shaming drugmakers discourages price spikes

(AP) — Frustrated by the rising cost of prescription drugs, California health advocates hope sunlight and a dose of shame will discourage drugmakers from raising their prices too quickly or introducing new medications at prices that break the bank.

California voters also will decide in November on a ballot measure that would prohibit the state — which covers millions of poor people, inmates and government retirees — from paying more than the U.S. Veterans Administration for drugs.

Experts attribute the recent rise in drug spending to the proliferation of new specialty drugs, many of them used to treat cancer, and fewer patent expirations that allow for generic competition.

Insurance companies would be required to report data on drug prices to state regulators, including the portion of premiums attributable to pharmaceuticals.

Drug manufacturing is a highly regulated industry with complex supply chains that relies on predictable demand, said Brett Johnson, director of state and local policy for the California Life Sciences Association, an industry group.

The bill's supporters dispute the risk of shortage, noting many of the specialty drugs that would trigger the notification have a short shelf life and require careful handling, making it difficult to stockpile them.