Enacts the "New York affordable drug manufacturing act"

• Democratic19

◆ The sponsor's argument

Why Gustavo Rivera says this is needed

Prescription drug costs, even for generics, continue to rise out of reach for patients and insurers, both public and private. New York State itself spends millions of dollars on prescription drugs through its public health insurance programs and self-funded coverage of our state workforce. One cause of drug price increases is lack of competition. Nearly 90% of prescription drugs are generic, yet a small number of companies manufacture them. Many contend this lack of competition has led to large price increases of widely used and important medications like antibiotics and epinephrine without evidence of increased costs of manufacturing. Aside from cost, there are some medications that are at risk of being in short supply. It is important to find creative ways to lower drug costs and ensure medications are available. This bill does not propose a new concept. U.S. Senator Elizabeth Warren during her 2020 presidential run called for the U.S. government to begin manufacturing generic medications to address rising prices, lack of competition in the market, and the potential for shortages in essen- tial medications. California became the first state in the nation to sign into law legislation to begin the process of state manufacturing or distribution of generic medications. This New York legislation is modeled after the California statute and would allow New York to partner with various entities, including other states, to lower costs and protect against short supplies. Similar to California's statute, this legislation directs the Department of Health (DOH) to identify generic drugs that are high-cost or suscep- tible to shortages for possible manufacturing partnerships. It specif- ically requires that the DOH consider one type of insulin, given the high costs and life-saving nature of this medication that over 7 million diabetics in the U.S. depend upon daily. The "New York Affordable Drug Manufacturing Act" would provide New York with an important tool to control drug costs for its taxpayers, residents, and those who lack health insurance by allowing. New York to pursue its own drug manufac- turing and partner with other states moving in this direction to both lower costs and protect against shortages of certain drugs.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.