California governor to sign drug price transparency bill that infuriates pharma
In a blow to the pharmaceutical industry, California Gov. Jerry Brown is expected on Monday to sign a bill that would require drug makers to explain and justify price hikes, making this the latest state to actively address the high cost of medicines.

In a blow to the pharmaceutical industry, California Gov. Jerry Brown on Monday signed a bill into law that requires drug makers to explain and justify price hikes, making this the latest state to actively address the high cost of medicines.

The bill, which was vociferously fought by the pharmaceutical industry, is set to become one of the more comprehensive state efforts to address pricing transparency.

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For instance, drug makers have to provide 60-day notice to insurers and government health plans before increasing list prices of any medicine that costs more than $40 by at least 16 percent in a two-year period. And health plans have to provide detailed information about prescription drug costs and the portion of premiums attributed to this expense. (Here is a fact sheet on the bill.)