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Supervisors back resolution to press for drug-price transparency, DPH and advocates urge expanded 340B access
Summary
Supervisor Chiu introduced a resolution to implement Proposition Ds mandate to reduce pharmaceutical costs and expand pricing transparency; DPHs chief pharmacy officer said roughly one-third of the city's drug spend benefits from 340B discounts, but many inpatient purchases are covered by nondisclosure agreements (Novation) that limit visibility.
The committee heard a resolution urging the city to use all available resources to reduce pharmaceutical prices and increase pricing transparency, a next step following voter-approved Proposition D. Supervisor David Chiu (introduced as the items sponsor) described the resolutions four commitments: DPH should explore consumer price-comparison tools; the city should pursue extending 340B discounts to inpatient settings in its federal legislative agenda; support policies for pricing transparency; and back state and federal innovation on drug-pricing.
"This was a measure that was overwhelmingly passed by our voters," Chiu said, noting DPH drug expenses have increased nearly 25 percent over five years and the city spends "over $23,000,000 a year" on pharmaceuticals.
DPH Chief Pharmacy Officer Dave Woods said the department uses group purchasing and the 340B program to secure lower prices for outpatient drugs and estimated that about one-third of DPHs drug spend is under 340B. He warned that 340B currently applies to outpatients only and that Novation contracts used for many inpatient purchases include nondisclosure terms that prevent the city from sharing the prices it pays.
"If I were to disclose somebody's price, then the supplier might be less likely to negotiate with me in the future," Woods said; Alita Van Rumpel of the City Attorneys Office said Administrative Code section 15.104 authorizes the city to enter agreements that require the city to accept certain cooperative vendor terms, which can include confidentiality provisions.
A broad set of public commentersincluding representatives of the AIDS Healthcare Foundation, patient advocates and senior and disability groupsurged action, highlighted cases of high out-of-pocket drug costs and called for greater transparency and access. Speakers noted hepatitis C therapies with extraordinarily high list prices and urged the Board to press state and federal policymakers while the city uses available administrative levers.
Supervisor Chiu closed by asking for a positive recommendation, and the committee moved the resolution to the full Board without objection.
