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New California Law Limits Drug Manufacturer Co-Pay Cards and Other Discounts in California

16 October 2017

Health Alert

In the most recent salvo by states eager to show an effort to contain prescription drug costs, California's governor has signed into law a bill that will prohibit, with some limited exceptions, pharmaceutical manufacturers from offering patients co-pay assistance and other common discounts off their out-of-pocket insurance expenses for prescription drugs if a lower-cost equivalent is covered by the individual's insurance or the active ingredient for the drug is available at a lower cost without a prescription. For those drugs, the new law prohibits manufacturers from offering any discounts, repayments, product vouchers, or other reductions in an individual's out-of-pocket expenses. The new prohibition, however, does not apply to free product or to assistance provided to a patient by an "independent charity patient assistance program."

Read More: New California Law Limits Drug Manufacturer Co-Pay Cards and Other Discounts in California

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