Texas Introduces Legislation To Amend Current Drug Cost Transparency Law

March 11, 2021

The Texas House of Representatives has introduced House Bill 1033 ("H.B. 1033"), which would amend the state's Drug Cost Transparency law [TEX. HEALTH & SAFETY CODE ANN § 441]. This law currently requires manufacturers to submit a report that includes the current wholesale acquisition cost ("WAC") for each FDA-approved drug sold in or into Texas to the Executive Commissioner of the Department of Health and Human Services ("Commissioner") annually by January 15th. The law also requires a separate report within 30 days of the effective date for a qualifying WAC increase. The definition of a qualifying WAC increase remains unchanged, and still applies to a prescription drug with a WAC of at least $100 for a 30-day supply that has a price increase of:

  • 15% or more in the previous calendar year; or
  • 40% or more over the previous 3 calendar years.

As introduced, this bill would require manufacturers to report WAC increase data to the Department of Health and Human Services ("Department") for qualifying WAC increases that occurred in the previous calendar year together with the Annual Report, as opposed to within 30 days of the WAC increase effective date.

Required WAC increase data, and publication of data on the Department's website, would remain the same as in the current law.

A manufacturer would be required to submit a fee with each report, in an amount to be determined by the Commissioner, in order to administer the provisions of the Drug Cost Transparency law.

Further, this bill proposes enforcement provisions for a drug manufacturer that fails to submit a required report or fee. The Department would be authorized to assess an administrative penalty in an amount not to exceed $1,000 per day for each violation.

More Resources