New Mexico Passes Prescription Drug Price Transparency Act

New Bill: HB0033AFS (nmlegis.gov) 

Effective: 01/01/2025

The new bill, titled the “Prescription Drug Price Transparency Act,” aims to enhance transparency within the prescription drug supply chain in New Mexico. It mandates various entities, including prescription drug manufacturers, pharmacy services administrative organizations, health insurers, and pharmacy benefits managers, to report prescription drug price trends to the Superintendent of Insurance.  

The Superintendent is required to collect and publicly report aggregate information on prescription drug price trends. Civil penalties are prescribed for non-compliance. The Act outlines reporting requirements for manufacturers, pharmacy services administrative organizations, authorized health insurers, and pharmacy benefits managers, including submission of data on prescription drug prices, reimbursement rates, and annual spending. It also mandates the Superintendent to submit annual reports to legislative committees and hold public meetings to discuss the findings.  

Additionally, it enforces penalties for failing to submit accurate and timely information and allows for audits of submitted data. The effective date of the provisions is January 1, 2025. 

1. Reporting Prescription Drug Price Trends: Manufacturers must submit data to the Superintendent of Insurance annually, starting by May 1, 2025, and thereafter. This data includes information on prescription drugs with wholesale acquisition costs of $400 or more for a thirty-day supply or a course of treatment less than thirty days, if they meet certain criteria regarding price increases. 

2. Providing Information: For each prescription drug meeting the criteria, manufacturers must provide various details, including:  

• • Initial wholesale acquisition cost 
  • Annual increase in wholesale acquisition cost over the previous five years 
  • Direct costs associated with manufacturing, marketing, and distribution 
  • Total revenue and net profit attributable to the drug 
  • Patent expiration date 
  • Government-negotiated prices in other countries 
  • Agreement details delaying generic versions 
  • Names and prices of any generic equivalents 
  • Total amount of manufacturer-supported financial assistance provided to consumers 

3. Notification of New Drug Introductions: Manufacturers must promptly report the introduction of new brand-name drugs in the U.S. market with prices higher than the   Medicare Part D specialty-tier threshold. 

4. Price Increase Notifications: Manufacturers must notify the Superintendent in writing of any price increases along with the reasons for the increase, effective date, current wholesale acquisition cost, and any known future increase of the drug’s cost. 

5. Confidentiality: Information provided by manufacturers is treated as confidential and not subject to public disclosure except as used in aggregate form for reporting purposes. 

Failure to comply with these requirements may lead to penalties imposed by the Superintendent and potential audits of the submitted data. 

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