AUSTIN, Texas -- A new Texas law ensures that prescription drugs can't exceed a certain percentage hike without some checks and balances first. The measure is providing a little hope to those who rely on drugs like insulin to stay healthy.
- New law to deter high prescription drug price hikes
- Price hike of 15% or higher to trigger reporting requirement
- Hope is law will keep prices down
Austin woman Bri Hamlyn lives with Type 1 diabetes. She refills her insulin pump every three or four days. The pump itself costs about $3,000 and each vile of insulin costs a couple hundred dollars a month, with insurance. Hamlyn said what's worse than sticking herself is the cost of the simple drug that's crucial to her health. To make ends meet, she's had to take out more student loans as she works her way through school.
"Month to month I was just stressing, how am I going to pay for everything? How am I going to pay for everything next year, especially? I'm having trouble saving, I'm having trouble paying off debts," said Hamlyn.
The prices of some prescription drugs, like insulin, are higher in the U.S. than they are in other countries, and according to the Health Care Cost Institute, Americans are paying more than double for insulin than they were in 2012.
"The question is why? What is responsible for that? Who is responsible?" said Rep. Tom Oliverson, R-Houston.
A new state law, by Oliverson, says that if a drug manufacturer raises the price of a drug by 15 percent, it triggers a reporting requirement to the Department of Insurance to explain why the hike was necessary.
"We wanted folks to be able to see in aggregate where these price increases are coming from so that we can be better informed as a general public, specifically about which drugs are increasing in price and why," Oliverson said.
Oliverson said his hope is that the law will be a deterrent for drug manufacturers and persuade them to keep their prices low as to avoid a tedious reporting process. That's a hope that Hamlyn can appreciate as she funds her education and her health.