Advocates Hope Shaming Drug-makers Discourages Price Spikes

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

They're promoting legislation that would require drug-makers to provide advance notice before making big price increases. Pharmaceutical companies have come out in force against the legislation, warning it would lead to dangerous drug shortages.

The measure would require pharmaceutical companies to notify buyers before increasing the price of a drug by 10 percent or $10,000 a year. Insurance companies would be required to report data on drug prices to state regulators, including the portion of premiums attributable to pharmaceuticals.