Notice: The DFS Portal will be unavailable from 6pm EDT on Friday, March 29 through Sunday, March 31 due to a scheduled system upgrade.
Governor Andrew Cuomo today announced the Department of Financial Services' newly formed Office of Pharmacy Benefits today announced it has initiated investigations into significant price spikes for six drugs that were connected to the COVID-19 pandemic by sending a demand pursuant to New York Insurance Law Section 111 requiring a statement from the manufacturer explaining the facts and circumstances surrounding the spikes.
"Throughout the COVID-19 pandemic, we've seen too many instances of pharmaceutical companies taking advantage of those in need and significantly raising the prices on life-saving prescription drugs,"Governor Cuomo said. "This shameful behavior cannot stand and needs to be rooted out at all costs. Companies should be on notice - if you attempt to capitalize on the health needs of New Yorkers, we will investigate you and hold you fully accountable."
"Putting profits over people's lives is unconscionable," said Superintendent Lacewell. "When drug manufacturers exploit a global pandemic for their own benefit, it cannot go unanswered. DFS will use every power at its disposal to shine a light on the world of drug prices. Today, we have taken our first steps in addressing the problem of excessive drug prices that has hit consumers' pocketbooks directly and through insurance premiums."
The impact on consumers is not just about dollars and cents: as these drugs are sometimes the difference between life and death, an extreme price spike can be a real barrier to lifesaving treatment, particularly during this global health emergency.
"It requires extreme greed and cynicism to see a global pandemic costing millions of lives as an opportunity for profit,"said Commissioner of the New York State Department of Health Dr. Howard Zucker. "I applaud DFS and Superintendent Lacewell for taking these steps to address the problem of excessive drug prices during this international public health crisis."
The Department of Financial Services' (DFS) Office of Pharmacy Benefits ;(OPB) has examined changes in drug prices during the state of emergency to identify spikes in price worthy of further investigation. Today, the OPB commenced investigations under Section 111 of the Insurance Law into anomalously large spikes in the prices of six& drugs that occurred during the COVID-19 pandemic, under circumstances determined to warrant further investigation. These drugs are:
Each of these manufacturers will now be required to provide information about and a justification for each spike the OPB has identified. Pursuant to the demands sent today, the manufacturers will provide DFS with written responses to questions such as the dates pricing decisions were made, the officers or employees involved in the decisions, any analyses conducted prior to the price spike, and the reasons for the price spike given internally. The OPB is authorized to collect additional information, including by examining witnesses or issuing subpoenas.
The commencement of an investigation does not mean that a price spike was unlawful or even unjustified; rather, it means that DFS has determined the circumstances warrant a closer look. If the investigation finds that illegal conduct occurred or that a price spike was not justified, these conclusions will be memorialized in a report of the Drug Accountability Board, the panel of experts appointed by the Superintendent just last month, and referrals to other relevant legal authorities may be made.
If it is determined that a valid reason for the spike exists, DFS will announce that development as well, and close the investigation. Through this work DFS will provide transparency in an area which has traditionally been opaque.
For more information or to report a drug price spike, visit the DFS website. Questions may be addressed to Eamon Rock, Director of the Office of Pharmacy Benefits, at [email protected].