New law would require drugmakers to justify price increases

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Connecticut officials say constituents who are sick of seeing their prescription drugs cost more and more can expect some relief.

State Attorney General William Tong met with doctors and seniors, including diabetics who rely on insulin, Thursday to talk drug prices.

"Today the drug sells for about $295 out of pocket. That's a 1,200% increase in inflation since 1996," says Kristin Whitney Daniels, of #Insulin4All.

Tong is currently suing 20 generic drugmakers on accusations of price-fixing. But while that plays out in court, a new state law could bring drug prices down by 2021.

"Any drugmaker that raises the price of their drug by 20% in one year, or 50% over three years, will for the very first time have to justify, in writing, that price increase," says state Rep. Sean Scanlon.

The new law will go even farther, forcing PBMs -- the "middle men" who help decide which drugs your insurance covers -- to reveal how much money drugmakers give them in rebates.

The action would take until 2021 because pharma companies don't have to reveal all of the information relating to this law until next year, and it'll take another year to process it all. Meanwhile, Tong's lawsuit may provide more immediate relief.

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