WASHINGTON (NEWS10) – Senator Kirsten Gillibrand has introduced legislation to protect Americans from skyrocketing prescription drug prices.
It would create penalties for pharmaceutical companies that engage in price gouging.
Senator Gillibrand believes the Stop Price Gouging Act would result in billions of dollars in savings for taxpayers.
The Act has four main parts:
- Require corporations to report any price increases and the justification for those increases.
- Imposes penalties for corporations with unjustified price hikes.
- Requires an Accountability Office study of initial launch prices and suggestions for best practices of new drug pricing.
- Reinvests money collected from companies in future drug research at the National Institutes of Health.
According to consumer reports, nearly 28 million Americans have personally experienced prescription drug price hikes.