AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE RHODE ISLAND HEALTH CARE REFORM ACT OF 2024 -- HEALTH INSURANCE OVERSIGHT

HB 5620 regulates prescription drug price increases in Rhode Island by imposing penalties on manufacturers who raise prices without supporting medical evidence. It targets drugs identified as having "unsupported price increases" through the Institute for Clinical and Economic Review (ICER) annual report. Manufacturers with over $250,000 in annual sales within the state face a penalty equal to 80% of the revenue difference between actual sales and what would have been earned at the previous year’s wholesale cost (adjusted for inflation). This law directly affects pharmaceutical companies selling prescription drugs in Rhode Island and aims to curb unjustified price hikes.