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By a vote of 13 to 0, the D.C. Council today granted final approval to legislation aimed at reigning in prescription drug prices. The bill, authored by Health Committee Chairman David Catania, makes it illegal to sell patented medicines for an "excessive price".
"This is a simple consumer protection issue," Catania explained. "As the cost of prescriptions goes up, drug companies' profits soar. All the while, consumers are forced to consider whether they can afford life-preserving medicines." The Prescription Drugs Excessive Pricing Act declares that selling patented medicines for an "excessive price" is illegal. The District government or any person affected by excessive prices may initiate legal action against a drug company if the wholesale price of a patented prescription drug in the District is over 30 percent higher than the same drug's price in Germany, Canada, Australia, or the United Kingdom. In court, the manufacturer has the burden of proving that the drug is not excessively priced given various development costs as well as profits to date. If the price of the drug is deemed excessive, sales at the elevated cost may be halted and other civil penalties may be levied on the prescription drug-maker. Since introducing this measure in early February, Catania secured endorsements from the Metropolitan Washington Labor Council, the local service workers union, and a number of churches in the District of Columbia. All of these groups have expressed concern with unyielding escalation of prescription drug prices. Catania continued, "Drug companies are lining their pockets as the cost of medicine increases beyond the means of our residents. Once implemented, this law will contribute to more people having access to essential prescriptions, employers being better able to afford coverage for their employees, and the District providing health services to underserved populations." |